Press releaseshttps://www.hiscoxgroup.com/press-release-rss
enUpdate on dividend payment and guidancehttps://www.hiscoxgroup.com/news/press-releases/2020/08-04-20
<span>Update on dividend payment and guidance</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/3931" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">Danny</span></span>
<span>8th April 2020</span>
<p><strong>Hamilton, Bermuda (8 April 2020) - </strong>In order to help Hiscox serve the needs of businesses and households through the extraordinary challenges presented by COVID-19, and with the support of our regulators, the Hiscox Ltd Board has decided that the resolution to approve the 2019 final dividend of 29.6 cents per share, which was scheduled for payment on 10 June 2020, will no longer be put to shareholders at the Annual General Meeting (AGM). The Board has also agreed that for 2020 the Company will not propose an interim dividend payment, or conduct any share buyback. </p>
<p>Hiscox’s capital, liquidity and funding positions remain strong. Trading across the Group for the first two months of the year was ahead of expectations, however in view of the uncertain impact of COVID-19 on the global economy, the Group is unable to accurately forecast the outlook for 2020. As such, we are withdrawing all financial guidance for 2020 until there is more clarity.</p>
<p>We remain confident in our ability to return to our normal 90-95% combined ratio target range for the Retail business in 2022.</p>
<p>We remain focused on supporting our customers, employees and other stakeholders through this crisis.</p>
<p><strong>Ends</strong></p>
<p> </p>
<p>Marc Wetherhill was responsible for the disclosure of this announcement for the purposes of MAR.</p>
<p><strong>For further information:</strong></p>
<table><tbody><tr><td>
<p><strong>Hiscox Ltd</strong></p>
</td>
<td>
<p> </p>
</td>
</tr><tr><td>
<p>Marc Wetherhill, Group Company Secretary, Bermuda</p>
</td>
<td>
<p>+1 441 278 8300</p>
</td>
</tr><tr><td>
<p>Kylie O’Connor, Group Communications Director, London</p>
<p>Ryan Thompson, Investor Relations Manager, London</p>
</td>
<td>
<p>+44 (0)20 7448 6656</p>
<p>+44 (0)20 7448 6522</p>
</td>
</tr><tr><td>
<p><strong>Brunswick</strong></p>
</td>
<td>
<p> </p>
</td>
</tr><tr><td>
<p>Tom Burns</p>
</td>
<td>
<p>+44 (0)20 7404 5959</p>
</td>
</tr><tr><td>
<p>Simone Selzer</p>
</td>
<td>
<p>+44 (0)20 7404 5959</p>
</td>
</tr></tbody></table><p> </p>
<p><strong>Note to editors</strong></p>
<p>1. Executive Director bonuses will not be paid until the dividend has resumed. As previously announced, Executive Directors were not eligible for a bonus for 2019 as ROE was below performance threshold level. </p>
<p>2. About the Hiscox Group</p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. </p>
<p>The Hiscox Group employs over 3,100 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.</p>
Wed, 08 Apr 2020 05:59:47 +0000Danny46911 at https://www.hiscoxgroup.com2019 Preliminary Resultshttps://www.hiscoxgroup.com/news/press-releases/2020/02-03-20
<span>2019 Preliminary Results</span>
<span><span lang="" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">Anonymous (not verified)</span></span>
<span>2nd March 2020</span>
<p>For the year ended 31 December 2019</p>
<p>“Retail profits up as Hiscox weathers a third consecutive year of storms.”</p>
<table><tbody><tr><td>
<p> </p>
</td>
<td>
<p><strong>2019</strong></p>
</td>
<td>
<p><strong>2018</strong></p>
</td>
</tr><tr><td>
<p><strong>Gross premiums written</strong></p>
</td>
<td>
<p>$4,030.7m</p>
</td>
<td>
<p>$3,778.3m</p>
</td>
</tr><tr><td>
<p><strong>Net premiums earned</strong></p>
</td>
<td>$2,635.6m</td>
<td>
<p>$2,573.6m</p>
</td>
</tr><tr><td>
<p><strong>Profit before tax</strong></p>
</td>
<td>$53.1m</td>
<td>
<p>$135.6m*</p>
</td>
</tr><tr><td>
<p><strong>Earnings per share ($)</strong></p>
</td>
<td>
<p>17.2¢</p>
</td>
<td>
<p>41.6¢*</p>
</td>
</tr><tr><td>
<p><strong>Earnings per share (£)</strong></p>
</td>
<td>
<p>13.5p</p>
</td>
<td>
<p>31.2p*</p>
</td>
</tr><tr><td>
<p><strong>Total ordinary dividend per share for the year</strong></p>
</td>
<td>
<p>43.4¢</p>
</td>
<td>
<p>41.9¢</p>
</td>
</tr><tr><td>
<p><strong>Net asset value per share ($)</strong></p>
</td>
<td>
<p>768.2¢</p>
</td>
<td>
<p>798.6¢*</p>
</td>
</tr><tr><td>
<p><strong>Net asset value per share (£)</strong></p>
</td>
<td>
<p>580.1p</p>
</td>
<td>
<p>627.0p*</p>
</td>
</tr><tr><td>
<p><strong>Group combined ratio</strong></p>
</td>
<td>
<p>105.7%</p>
</td>
<td>
<p>94.9%</p>
</td>
</tr><tr><td>
<p><strong>Return on equity (annualised)</strong></p>
</td>
<td>
<p>2.2%</p>
</td>
<td>
<p>5.3%*</p>
</td>
</tr><tr><td>
<p><strong>Investment return (annualised)</strong></p>
</td>
<td>
<p>3.6%</p>
</td>
<td>
<p>0.7%</p>
</td>
</tr><tr><td>
<p><strong>Reserve releases</strong></p>
</td>
<td>
<p>$25.9m</p>
</td>
<td>
<p>$326.5m</p>
</td>
</tr></tbody></table><p><strong>Highlights</strong></p>
<ul><li>Gross premiums written up by 8.1% in constant currency, despite disciplined action to reduce $200 million in underperforming lines. </li>
<li>Group profits were impacted by large catastrophe events, with $165 million reserved for Hurricane Dorian and Typhoons Faxai and Hagibis, in addition to $25 million of reduced fees and profit commissions.</li>
<li>Hiscox Retail now a $2.2 billion business with profits increased by 22% to $178.4 million. Combined ratio of 98.7%, in line with guidance of between 97-99% for 2019.
<ul><li>Hiscox UK and Hiscox Europe generate good profits, driven by a strong performance in small business insurance.</li>
<li>Hiscox USA is profitable, with action taken to improve performance in D&O and media business progressing as planned.</li>
<li>180,000 Retail customers added in 2019, taking the total to 1.2 million globally – including more than 450,000 direct and partnerships customers. Growth in Retail expected to be in the middle of the 5-15% target range for 2020.</li>
<li>Retail combined ratio to improve by 1-2% per annum and return to 90-95% target range in 2022.</li>
</ul></li>
</ul><ul><li>Hiscox London Market impacted by catastrophes and property claims, but market conditions continue to improve. Hiscox Syndicate 33 increased its capacity by 19% to make the most of any opportunities for profitable growth in 2020 as rates rise for the third successive year, up in 14 out of 15 lines.</li>
<li>Hiscox Re & ILS impacted by natural catastrophes, market-wide adverse development on prior year catastrophes, as well as deterioration in some previously exited lines.</li>
<li>Strong investment return of $223.0 million (2018: $38.1 million).</li>
<li>Robust reserves 9.4% above actuarial estimate, with continued positive development in Retail. Reserve releases expected to be between 3-5% of opening net reserves in 2020.</li>
<li>Full year dividend up by 3.5% to 29.6 cents, in line with the Group’s progressive dividend policy.</li>
</ul><p>Bronek Masojada, Chief Executive Officer, Hiscox Ltd, commented:</p>
<p>“Our strategy of balance, between big-ticket lines and our more steady retail earnings, provides resilience and opportunity. Our growing Retail profits and strong investment return has enabled us to weather a third consecutive year of storms. We are investing for growth as we look to capture the many opportunities we see ahead.” </p>
<p>*These figures have been restated to reflect previously announced tax provisions. See note 2.2 of the financial statements.</p>
<p><strong>2020 events, Coronavirus and UK floods</strong></p>
<p>It is too early to estimate the impact of the Coronavirus. The main areas of potential exposure for Hiscox are event cancellation, travel and personal accident cover and we have received notifications of small claims to date. Pandemic is covered in a very small part of the portfolio where we have very controlled net exposure. </p>
<p>Some Hiscox UK household customers have unfortunately suffered flooding from the recent storms and our claims teams are working hard to get them back to normal. To date we have had 112 claims of which over 50% are reinsured with FloodRe, the Government backed flood insurance programme. Net losses are well within our expected catastrophe loss budget for the quarter. </p>
<p><strong>For further information</strong></p>
<table><tbody><tr><td>
<p><strong>Hiscox Ltd</strong></p>
</td>
<td>
<p> </p>
</td>
</tr><tr><td>
<p>Marc Wetherhill, Group Company Secretary, Bermuda</p>
</td>
<td>
<p>+1 441 278 8300</p>
</td>
</tr><tr><td>
<p>Kylie O’Connor, Head of Group Communications, London</p>
<p>Ryan Thompson, Investor Relations Manager, London</p>
</td>
<td>
<p>+44 (0)20 7448 6656</p>
<p>+44 (0)20 7448 6522</p>
</td>
</tr><tr><td>
<p><strong>Brunswick</strong></p>
</td>
<td>
<p> </p>
</td>
</tr><tr><td>
<p>Tom Burns</p>
</td>
<td>
<p>+44 (0)20 7404 5959</p>
</td>
</tr><tr><td>
<p>Simone Selzer</p>
</td>
<td>
<p>+44 (0)20 7404 5959</p>
</td>
</tr></tbody></table><p><strong><u>Notes to editors</u></strong></p>
<p><strong>About The Hiscox Group</strong></p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. </p>
<p>The Hiscox Group employs over 3,100 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. </p>
<p><a href="https://www.hiscoxgroup.com/sites/group/files/documents/2020-03/Hiscox-Ltd-2019-preliminary-results-2-March-2020.pdf" target="_blank" title="Full regulatory statement">Full regulatory statement</a></p>
<p>The 2019 Preliminary Results presentation will take place on Monday, 2nd March 2020 at 9:00am GMT. Replay the webcast <a href="https://www.investis-live.com/hiscox/5e398d078d57e813008e5e38/sdgd" target="_blank">here</a>.</p>
<p> </p>
<p><strong>Chairman’s statement</strong></p>
<p>I am able to report a profit before tax of $53.1 million (2018: $135.6 million*), with the investment income of $223.0 million (2018: $38.1 million) being a key contributor to the result. Our strategy has remained the same as we continue to build our retail businesses to balance the more volatile big-ticket risks and it is working. </p>
<p>In 2019, the Retail businesses accounted for 54% of our overall gross premiums written and 73% of our net premiums written. As I have said before, the growth in the Retail arm demonstrates the power of compounding, each year we aim for between 5% and 15% growth. In 2019, Retail growth moderated to 7% (2018: 11.3%) in constant currency, in line with our expectations, given the result of action taken over the last 18 months to reduce in underperforming lines, and the impact of bedding in new IT systems and ways of working in the UK. Our US business accelerated growth as the year progressed, in the UK we are seeing momentum improve and our European business had another excellent year. The combined ratio for Hiscox Retail is 98.7%, outside of our target range of between 90%-95%, but still profitable, and it’s needed to be as our big-ticket lines took a battering from a series of catastrophes in Japan and an active claims year in the London Market. Paying claims and restoring businesses is the raison d’etre of an insurance company. We have fulfilled our promise to pay this year, having paid out $1.2 billion in claims across the Group. The London Market has responded well, with increased prices across the board; the reinsurance market is a little slower to adjust and we will shrink accordingly.</p>
<p>Our balanced strategy means that we are still able to grow the dividend, despite a large loss year. As such, the Board is pleased to announce a final dividend of 29.6 cents, which is an increase of 3.5% in line with prior year dividend. The record date for the dividend will be 15 May 2020 and the payment date will be 10 June 2020.</p>
<p>Hiscox is a specialist insurer. We are not a generalist and aim to be very good at some things and leave other classes to the competition. The breadth of the reach of the Company, however, is increasingly impressive. In the big-ticket arena we participate as a significant participant in the ILS market and stretch all the way across into the retail business to offering personal and commercial customers online coverage. This innovative activity emanates from our restless culture of always trying to find a better way of doing insurance and reinsurance. I derive joy from seeing my colleagues creating new opportunities and making Hiscox such a stimulating environment and interesting place to work. New people are attracted by these qualities and the challenging careers we offer and I’m proud that we have been named in the top five of Glassdoor’s Best Places to Work in 2020. This ability to attract talented and driven workers gives me confidence for the future. </p>
<p><strong>The market</strong></p>
<p>The retail market in the USA is hardening in casualty lines, where we are seeing rate rises up to 13% in response to adverse claims trends. The action taken over the last 18 months to refocus our private company D&O and our media accounts is working. We are seeing increased competition in the UK direct-to-consumer commercial business and expect some impact following the IR35 legislation†, but we also see plenty of opportunity for profitable growth. </p>
<p>The reinsurance market has yet to show the same level of discipline as we have seen in our big-ticket insurance lines. It is felt that the very large reinsurers are happy to hold prices at last year’s levels in order to squeeze some smaller players who are reliant on increasingly expensive retrocession. It was ever thus, and the dance will no doubt continue. It is very unlikely that the investment contribution will be so high in 2020 and hopefully reinsurance underwriting discipline will return. In the meantime, we will reduce our exposure, waiting for sense to prevail. </p>
<p>The big-ticket insurance business is getting interesting at last. In 2019, Hiscox London Market saw rate rises in 14 out of 15 classes, overall up by 11% and continuing to rise. The direction is good. We don’t need to be greedy and drive huge volatility in pricing, but we need to be persistent in getting reasonable increases year-on-year to repair the damage done by a long decline. We have to be able to cover claims inflation, which has been equally persistent, driven by genuine increased costs but also by the ingenuity of lawyers to meet their budgets at the cost of ours. </p>
<p><strong>Climate change</strong></p>
<p>I have spent my working life wrestling with the impact of climate volatility on our business. The year-to-year nature of underwriting risk gives us a front row seat to climate variability. Investment in natural catastrophe research and modelling has always been important to us, and our market-leading catastrophe research team develops not just what we call ‘the Hiscox view of risk’, but now ‘the Hiscox view of climate risk’. We will strengthen our expertise this year with two additional climate change researchers.</p>
<p>As debate around dealing with climate change and, more specifically, Environment Social and Governance (ESG) issues, accelerate, so too do our efforts. We developed the Hiscox ESG framework during the year, which guides our efforts, with central themes that can be locally tailored and executed.</p>
<p>We also publicly pledged our support for the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), and completed ESG disclosures for FTSE4Good, CDP, Dow Jones Sustainability Index and ClimateWise. Hiscox has been carbon neutral through offsetting since 2014. There is more to do, of course, and we are focused on the opportunity as well as the challenge that this brings.</p>
<p><strong>The Board</strong></p>
<p>We have a strong Board and Executive team. Our Non Executive Directors have a wealth of experience in insurance, reinsurance, marketing and banking, gained in all corners of the world. They have diverse backgrounds and come from a number of different countries which is very important to us as we continue to build a global business. One test I always apply to a new Non Executive is that in some way, they have already been where we are going. </p>
<p>We enjoy having an Executive team that has had a long service with the Company, and a balance of experience and fresh thinking. This year, Richard Watson retired as Executive Director and Group Chief Underwriting Officer after 33 years with Hiscox. He has made a massive contribution to the business in that time in a variety of leadership roles and I thank him for everything he has done. He stays on with us as Non Executive Chairman of Hiscox Re & ILS and also as a Director of our London Market subsidiary. Both are roles he is admirably suited to, and qualified to do, and I am pleased we will continue to benefit from his expertise in this way. </p>
<p>Joanne Musselle replaces Richard as our new Chief Underwriting Officer for the Group and Executive Director. This was an internal appointment after an extensive search both inside and outside of Hiscox. Joanne has been with Hiscox since 2002 and has some very valuable experience under her belt, gained in claims management, as Chief Underwriting Officer for Hiscox UK & Ireland, and latterly as Chief Underwriting Officer of all our retail operations. I am delighted we will benefit from her experience on the main Board.</p>
<p>Following nine years of service, at which point the UK Corporate Governance Code deems him not independent, Robert McMillan, stepped down from the Board in May. Bob’s vast experience in building retail businesses has been invaluable and I am pleased that we will continue to benefit from his advice as he remains a Non Executive Director on our Hiscox USA Board.</p>
<p>It is with great sadness that I report the death of Dr James King during 2019, who served on the main Board from 2006 to 2015 and was a valued counsellor. His sound common sense and incisive mind were very important to me. As a Bermudian, he was an able pilot helping us to navigate our arrival on Bermuda in 2006.</p>
<p><strong>Culture and values </strong></p>
<p>We periodically review our culture to make sure as a Group we have the right set of values to guide us. <br />
We have recently finished a year-long initiative, which involved canvassing hundreds of employees from across the Group asking: what makes them proud to be a part of Hiscox, what values resonate with them and what values they see being lived. I am glad to say that this has resulted in some fine-tuning of our values to guarantee that they are fit for purpose for the future. </p>
<p>As a result of our values re-fresh we’ve adopted ‘connected’ as the theme of this year’s Annual Report. It captures our sense of togetherness and our long-term commitment to building a sustainable business of which everyone can be proud. Part of that connectedness is also about looking out for each other, knowing the people we work with and creating networks beyond teams. I am proud of the WeMind initiative created in the UK by our employees; a mental health and well being network that introduced mental health first aiders and oversees activities including a ‘walk and talk club’ to bring people together to discuss what’s on their mind and delivered mental health training for over 100 people managers. It was gratifying for the team behind this initiative to receive the Outstanding Employee Network of the Year award at the European Diversity Awards 2019 and shows how our values are being lived by the people who work here. I thank them all for their hard work during the year.</p>
<p><strong>Outlook</strong></p>
<p>We aim to balance Hiscox Retail with the higher-volatility big-ticket businesses. Looking forward, we expect our retail business to get back on track, with better growth this year than last and an improved combined ratio. We will trim the reinsurance business to suit conditions. The London Market is seeing improvements in rates and conditions. In the past these improvements have made it straight through to much better returns. We have the brand, talent and diversity of product and geography to make the most of the opportunities ahead. </p>
<p><strong>Robert Childs<br />
2 March 2020</strong></p>
<p>*These figures have been restated to reflect previously announced tax provisions. See note 2.2 of the financial statements.<br />
†The new IR35 legislation that come into effect from April 2020 will change the way in which contractor status is determined when working with medium and large organisations in the private sector. </p>
<p><strong>Chief Executive’s report </strong></p>
<p>2019 showed the value of our long-standing strategy of building and broadening the balance in our business between big-ticket lines and more steady retail earnings. Good performance by Hiscox UK and Hiscox Europe, combined with strong investment returns, offset the impact of a third year of catastrophe events and some adverse claims development in the big-ticket business and Hiscox USA. This allowed us to deliver a combined ratio of 105.7% (2018: 94.9%) and a pre-tax profit of $53.1 million (2018: $135.6 million*). This is below our ambitions and your expectations of us. We have taken necessary action which is having a positive impact. </p>
<p>Gross premiums written grew in constant currency by 8.1% to $4,030.7 million (2018: $3,778.3 million). We have seen good rate momentum in many areas, and will continue to grow in a disciplined way. We have cut over $200 million of underperforming business, but we are still growing having found new opportunities where conditions are good and rates are healthy. In the same way that our strategy of balance has given us resilience in the short term, it drives opportunities in the medium term and we are optimistic about the prospects for our $2.2 billion Retail business, and in the benefit of the repricing we are seeing in our London Market business.</p>
<p>I review each of our business areas in turn below.</p>
<p><strong>Hiscox Retail </strong></p>
<p>Hiscox Retail comprises our smaller ticket businesses in the UK, Europe, the USA and Asia, and our Special Risks business. In this division, our specialist knowledge and tailored products differentiate us and our ongoing investment in brand helps us build strong market positions. </p>
<p>Retail profits increased by 22% to $178.4 million (2018: $146.3 million*) with a combined ratio of 98.7% (2018: 93.6%). Investment returns were a material contributor and we were pleased that Hiscox Retail experienced continued positive prior year reserve development of $46 million (2018: $100 million) despite strengthening in a few poor performing lines.</p>
<p>As we said in our Q3 trading update, the 2019 combined ratio for Hiscox Retail is outside the 90-95% range we target for this division due to the impact of claims activity in the USA and a cautious approach to reserve development. Our US experience is due to three factors. First, like others in the US private company directors and officers’ (D&O) market, we experienced an increase in claims costs on the employment practices liability element of the cover. Our lower D&O policy limits leaves us relatively insulated from ‘jumbo awards’, but the trickle-down effect increased average claim size. Second, the time to settle small business casualty claims in the US has lengthened, increasing our currently outsourced legal costs. Finally, in line with our cautious approach, we are setting more prudent current year loss picks, and we expect to hold reserves for longer.</p>
<p>As we announced last year, we have responded firmly to these factors. We have reduced our private company D&O book from $80 million to less than $20 million and are investing in strengthening our internal claims capability to allow us to in-source more of our legal work. Rates for US private company D&O are turning and we are seeing increases of 13%. We are confident that our Retail combined ratio will improve by 1-2% per annum to return to our 90-95% combined ratio target range in 2022. </p>
<p>We now serve over 1.2 million Retail customers generating $2.2 billion of premiums, growth of 7.1% in constant currency (2018: 1 million customers and $2.1 billion GWP). A key priority has been building the brand as well as the infrastructure to operate effectively at this scale. In the last decade we have invested over $500 million in marketing of which $88.9 million was in the last year (2018: $76.9 million). We see the pay-off in brand awareness, affinity, consideration and decision to purchase, all of which are key drivers of our economics. Our multi-year IT modernisation programmes continue in order to support the growth ahead. </p>
<p>Our direct-to-consumer and partnerships businesses are thriving, seeing compound growth of 29% over the last three years. We focus largely on micro businesses, sole traders and businesses with fewer than ten employees, and 80% of our customers have premiums of less than $/£/€1,000. </p>
<p>The opportunity for Hiscox Retail remains enormous, with an addressable small business market in countries where we already operate of over $80 billion of premium income and growing. We estimate that we currently serve less than 2% of this highly fragmented sector. At the moment this opportunity is clearest in the USA where we are ahead of the competition, but inevitably some are now beginning to respond. Ongoing investment in marketing is essential as we continue to see greater value in investing for profitable growth, rather than running the business for short-term profitability. Building a small-ticket retail business takes time, but persistence pays off in market position, scale and long-term profitability. Our expectations for revenue for Hiscox Retail remain between 5-15%.</p>
<p>During the year, we made an additional tax provision of up to $60 million following a reappraisal of how we invested in and classified marketing activity historically. This additional provision has been presented as a prior year adjustment and, as a result, the previously disclosed profit for 2018 has been restated.</p>
<p><em><strong>Hiscox UK</strong></em></p>
<p>Hiscox UK provides commercial insurance for small- and medium-sized businesses as well as personal lines cover, including high-value household, fine art and luxury motor. </p>
<p>Hiscox UK had a good year of recovery after a challenging 2018 as it adapted to a new IT system with new ways of working which impacted growth. Service levels have now improved and we appreciate the support of our brokers and customers while we worked hard to put things right. Gross premiums were up by 3.9% in constant currency to $746.4 million (2018: $749.6 million) with our commercial business growing by 9%. </p>
<p>The direct-to-consumer market remains competitive, particularly in commercial lines. Despite this, we are operating in healthy niche markets and have been able to grow premiums by around 10%. Looking forward, IR35 (the changing basis of taxation for independent contractors), may have a short-term modest impact on growth.</p>
<p>In household broker business, retention was impacted due to the tough pricing action taken over the last 18 months in response to market-wide claims trends such as the growing prevalence of escape of water claims. I am pleased to report a return to profitability and stability in top line, driven by our award-winning claims reputation. </p>
<p>Cyber is a growth area and we launched a new and enhanced product called CyberClear during the period. We are proud that it has been rated the most comprehensive cyber insurance policy for SMEs as the first and only policy to receive a 100% score in the Insurance Times Cyber Product Report. <br />
The team’s hard work was recognised with three industry awards; Insurance Times’ Personal Lines Insurer of the Year and Cyber Product of the Year, and, at the British Insurance Awards, Insurance Provider of the Year.</p>
<p><em><strong>Hiscox Europe</strong></em></p>
<p>Hiscox Europe operates in Germany, France, Benelux, Iberia and Ireland. These businesses provide personal lines cover, including high-value household, fine art and classic car, as well as commercial insurance for small- and medium-sized businesses. </p>
<p>Our European operations had another excellent year, delivering $408.4 million in gross written premiums (2018: $372.2 million), an increase of 15.6% in constant currency. Our new carrier, Hiscox SA, started trading in January 2019, and we successfully transferred all policies to our new entity. This completed our Brexit restructuring for Hiscox Retail, a multi-year effort which cost us $18 million and required $50 million in incremental capital.</p>
<p>We continue to see strong demand for our professions, specialty commercial and cyber products across our businesses in Europe. This has enabled us to carve out a leadership position for these lines in Germany, Spain and Benelux. </p>
<p>We extended our footprint in Germany, opening offices in Berlin and Stuttgart, and expanded the team in Munich. Additional investment in marketing and distribution is having a positive impact, and the team were rewarded for their efforts with a ‘Best in Industry’ award for our claims management in D&O, cyber and professional indemnity from AssCompact, a popular broker publication. </p>
<p>In France we have seen a return to stronger profitability after several challenging years. This improvement has been driven by a period of portfolio adjustment which included the introduction of a new underwriting and pricing strategy. A continued focus on growing our partnerships business in Spain, through innovative solutions and by improving the service we offer, has seen a 20% increase in premium versus the prior year. We will continue to build on our successful partnerships in both France and Spain and actively explore new distribution opportunities in the technology and insurtech space.</p>
<p>The roll-out of our ‘MyHiscox’ broker extranet sites across Europe has made it easier for brokers to do business with us by providing them with access to additional products and self-service features. The robotic process automation (RPA) which has been rolled out across policy administration, claims and finance, has resulted in the automation of 115,000 transactions in 2019. This enables us to not only automate back-end processing but also further improves service levels for our brokers and partners. <br />
Similar to the systems changes completed in the UK and under way in the USA, we are also about to begin the multi-year implementation of a new core platform for Europe, starting in Germany in 2020. This is a necessity to support the scale of the business.</p>
<p>Our business in Europe has grown since we opened our first office in Paris in 1995, with no business, and lots of ambition. It is now a consistent and important contributor to our profits. Hiscox Germany reached €100 million in premiums in 2019 and France will follow suit in 2020. The market in our segments in Europe is significant and our ambition is to have Hiscox Europe match Hiscox UK in scale and profits. This is a significant opportunity for us.</p>
<p><em><strong>Hiscox USA</strong></em></p>
<p>Hiscox USA underwrites small-to-mid-market commercial risks through brokers, other insurers and distribution partners and directly to businesses online and over the telephone. </p>
<p>The business continues to achieve strong growth, with gross premiums written increasing by 6.8% over the year in constant currency to $865.0 million (2018: $809.6 million), growing to 11% in the second half. Despite market challenges in some casualty lines, Hiscox USA delivered a profit in 2019. </p>
<p>Our direct and partnerships division (DPD) continues to be the star performer to reach $275 million. It has benefited from our sustained investment in marketing and brand building. We launched our first fully integrated marketing campaign with ABC TV and Major League Baseball this year, and have continued to build on our ongoing ‘Encourage Courage’ campaign aimed at small businesses – all of which helps to differentiate us from our competitors. </p>
<p>Our broker channel business has seen strong growth in healthcare and general liability where rates are attractive, but a disciplined approach in private company D&O, media and entertainment business has resulted in a reduction in those areas throughout the year. The action we have taken in these lines is working, as we have seen an improvement in current year loss ratios. Like others in the market, we are seeing increased competition in mid-market cyber, which has led to reduced pricing and widening cover, and we are being selective. </p>
<p>Our preparations for the US IT systems changes, which are necessary to support our future growth plans, are progressing well, with roll-out to DPD expected during 2020. </p>
<p>We have an addressable market of 30 million small businesses in the USA and these investments in IT and marketing will help us achieve our ambitions. </p>
<p><em><strong>Hiscox Special Risks</strong></em></p>
<p>Hiscox Special Risks underwrites kidnap and ransom (K&R), security risks, personal accident, classic car, jewellery and fine art, with teams in London, Guernsey, Cologne, Madrid, Munich, Paris, New York, Los Angles and Miami. </p>
<p>Gross premiums written decreased by 3.1% in constant currency to $129.9 million (2018: $136.2 million). Our expertise in the K&R market has helped us maintain our leadership position in a very competitive environment. While others in the market are streamlining their offering, we remain focused on building out our expertise and will continue to innovate to preserve our market share. A highlight this year was a new product the team developed and brought to market in just two weeks to support our marine clients travelling to the Gulf following political tensions in Iran. It is precisely this responsiveness which sustains and builds our market position with customers.</p>
<p><em><strong>Hiscox Asia</strong></em></p>
<p>Our brand in Asia, DirectAsia, is a direct-to-consumer business in Singapore and Thailand that sells predominantly motor insurance. It grew gross written premiums by 36.6% in constant currency to $46.6 million.</p>
<p>Singapore and Thailand have attracted and retained record numbers of customers, driven by the success of new partnerships with firms like Prudential, Shell and Vicom. Similar partnerships with like-minded businesses will enable us to continue on this growth trajectory. An ongoing investment in brand has helped us to combat increased competition and supports our drive to reach scale. </p>
<p><em><strong>Hiscox London Market</strong></em></p>
<p>Hiscox London Market uses the global licences, distribution network and credit rating available through Lloyd’s to insure clients throughout the world.</p>
<p>Hiscox London Market’s profits decreased to $30.4 million (2018: $75.8 million*) and the combined ratio deteriorated to 104.4% (2018: 89.3%). The most material adverse impact came from attritional losses in property, and large loss activity in D&O and alternative risk. We also suffered adverse prior-year development from healthcare, and prior year catastrophes. </p>
<p>A second year of rising rates in the London Market has driven above-budget growth of 10.3% to $967.9 million (2018: $877.7 million), or 11.2% in constant currency. Positive momentum has continued in the majority of classes, spurred on by a withdrawal of capacity and the Lloyd’s ‘Decile 10’ initiative which has instilled some much-needed discipline in the market. We have seen material rate increases in major property, cargo, hull and general liability. In US public company D&O, rates are up 60% and we have grown substantially. These rate improvements are necessary after the extended soft market, however in some areas such as Florida small property risks and personal accident, rates are still not reflective of the risk, and where necessary we will shrink.</p>
<p>In property, we are actively changing the portfolio mix and reducing our exposure in our household and commercial binders where we have suffered attritional losses alongside catastrophe losses from Hurricane Dorian. This action will improve underlying profitability in time, however the 12-month terms on binder business means that we will not see the full benefits until 2021 and 2022. Terrorism delivered good profits in tough market conditions, despite being impacted by riots in Hong Kong and Chile.<br />
Modernisation in the London Market is a multi-year, market-wide initiative which I believe is critical to the long-term success of Lloyd’s. We have been strong supporters of the push towards electronic trading via Placing Platform Limited, an initiative which I chair, and I am pleased to say that over 75% of all business we write at Lloyd’s is now bound electronically.</p>
<p>The goal for Hiscox London Market is ‘to lead the way in emerging risk’ and so we have been focused on driving awareness of new risks. We held a first-of-its-kind ‘cyber cube’ experiential event on the trading floor of Lloyd’s of London which tested cyber security knowledge and promoted our new CyberClear365 product. We created a virtual reality simulation of a US hurricane and an app to assist our client’s understanding of rising sea levels and the downstream impact for homes and communities. These events drive awareness and sales.</p>
<p>We are also leading the way in digital trading. Our FloodPlus product uses external data to price risks more precisely and we drive down cost by using APIs to connect to US coverholders. We also use third-party capital to leverage our expertise, giving us larger lines to deploy through consortia for general liability, space, flood and product recall.</p>
<p>We are optimistic about conditions in the London Market and have increased our stamp capacity – the amount of business we can write through Lloyd’s via Hiscox Syndicate 33 – by 19% year-on-year to £1.7 billion in 2020. This gives us the headroom to execute our plans, taking advantage of the ongoing price rises and dislocation in the market.</p>
<p><strong>Hiscox Re & ILS</strong></p>
<p>Hiscox Re & ILS comprises the Group’s reinsurance teams, based in London and Bermuda, and insurance-linked securities (ILS) activity. The team underwrites on behalf of Hiscox and third-party capital partners, including other insurance companies, Lloyd’s syndicates and capital market investors.<br />
Hiscox Re & ILS has been impacted by another year of heavy catastrophe claims, resulting in a loss before tax of $93.8 million (2018: loss of $28.7 million*) and a 2019 combined ratio of 163.9% (2018: 116.9%). This is the third consecutive year of large events. Our long-standing relationships in the Japanese market meant that Typhoons Faxai and Hagibis had a material impact on us. We also experienced claims from Hurricane Dorian which impacted the Bahamas and the US, as well as from the riots in Chile and wildfires in Australia. Unusually, Hiscox Re & ILS suffered prior year deteriorations due to the adverse development of 2018 Typhoon Jebi and the need to strengthen reserves for the healthcare business which we exited in 2017. All of these factors combined meant we had this poor result.</p>
<p>Gross premiums written grew by 7.4% in constant currency to $866.5 million (2018: $812.0 million), as rate improvement in loss-affected property lines and retrocession was offset by deliberate reductions in risk excess and our withdrawal from casualty reinsurance business. Throughout the year, the team remained disciplined in the face of underwhelming, albeit positive, rate improvement, still dampened by an overabundance of capacity despite three years of significant market losses.</p>
<p>Our ILS offering continues to see interest from new and existing clients, with assets under management at $1.5 billion. Both of our flagship Kiskadee funds ended 2019 with positive returns, a good result in a challenging year. We expect that ILS funds under management will decrease in 2020 as one of our investors has indicated that they will reduce their commitment to this asset class. At the beginning of 2019 we launched a new fund, giving ILS investors access to both reinsurance and primary insurance risk through the Hiscox Re and Hiscox London Market teams. The fund launched with $100 million in capital and we have been pleased with its performance in its maiden year. We also launched a new fund for 1 January renewals, offering investors a higher risk/reward profile to complement our existing medium and lower risk/return funds.</p>
<p>In such an uncertain environment as this, it pays to be disciplined and nimble. The vision for Hiscox Re & ILS is ‘one team, unlocking capital and pioneering risk’ and the goal is to bring together our capabilities from underwriting through to analytics, research and claims, in order to profit in changing markets. We continue to believe engaging with multiple capital sources will allow us to write a broader range of products, more of them, and at better margins. At the moment we do not expect to fully use all of the capital available to us in 2020 as rate increases continue to be below our targets. We therefore expect top line growth to remain subdued as we pursue a disciplined path.</p>
<p><strong>Claims</strong></p>
<p>It has been a busy year for claims in big-ticket lines and Hiscox USA as outlined previously, however our Retail businesses in the UK and Europe had a relatively good claims experience. </p>
<p>For Japanese Typhoons Faxai and Hagibis, and Hurricane Dorian which impacted the Bahamas and the US, we reserved $165 million and in addition we expect $25 million in reduced fees and profit commission. </p>
<p>In 2019, we had a small positive reserve release of $26 million (2018: $326 million) from prior years. Despite its challenges in the US, Hiscox Retail had a positive prior year reserve development of $46 million (2018: $100 million). Hiscox London Market and Hiscox Re & ILS suffered deteriorations of $20 million in aggregate (2018: $126 million favourable). We seek to reserve cautiously and our reserves are set at 9.4% above actuarial estimates (2018: 11.0%). We expect that we will return to our more normal pattern reserve releases of 9% to 12% of opening reserves over the next three years. In 2020, we expect reserve releases to be between 3-5% of opening net reserves, returning to our normal pattern over the next three years. </p>
<p><strong>Information technology and major projects</strong></p>
<p>The significant investment we are making in replacing end-of-life technologies with new systems and processes has continued this year. Our Retail customer numbers have grown by 172% to 1.2 million over the last five years, and we need this improved infrastructure to meet their expectations for system availability, digital accessibility, and operational robustness. Regulators are also beginning to scrutinise the financial sector’s operational resilience. Although our core system availability is currently over 99.9% these investments mean we are building a business with the infrastructure to support our future growth ambitions.</p>
<p>2019 saw the bedding in of the new Hiscox UK IT system. After a challenging period of adjustment in which broker service levels were not what we would have hoped, I am pleased to say we have seen a return to normalcy. Those products which are not on the new system will be migrated across by 2022. In the direct channel, the underwriting of 90% of direct commercial business and in the broker channel 60% of new business, is automated. The increased automation of simple underwriting process has freed our underwriters up to do what they do best by focusing their efforts on our most unusual or complex risks. </p>
<p>Hiscox USA worked on a new system in 2019 and 2020 will see this go live within our DPD business with the project concluding in 2021. Our US broker channel will follow once the new system has had the opportunity to embed. Hiscox Europe is at the start of a similar journey, with preparations under way to begin system changes in Germany, and so will benefit the most from our lessons learnt along the way.</p>
<p>We are now in the implementation period of our Group-wide finance transformation programme, which will replace our core finance systems and evolve the capabilities of our finance teams worldwide. </p>
<p>We expect that 2020 will be the last year of peak system change, with the volume of change dropping to a lower level from 2021. As the systems become fully functional we can expect to see benefits in the Group’s expense ratio.</p>
<p>2020 will also see Hiscox develop a new UK location strategy. Hiscox London has been located at 1 Great St Helen’s for the last 22 years and our lease will soon come to an end. Before moving into new premises, we have taken the opportunity to review our UK footprint in order to shape our UK-based activities to support growth at a lower cost. Over the next two or three years we will move up to 300 roles out of London to join the 750 Hiscox employees already working in other locations across the UK.</p>
<p><strong>Investments</strong></p>
<p>We manage our investment portfolio with two main objectives in mind: providing sufficient liquidity to pay claims and providing capital to support the underwriting business, while generating strong risk-adjusted returns. On all fronts, the investment portfolios delivered in 2019. </p>
<p>With the tailwinds of strong markets, our investment return was the best we have seen in several years. US bonds form the majority of our portfolios across the Group, and we maintained a modest allocation to equities and other risk assets. As a result of this strategy, our investments made $223.0 million (2018: $38.1 million) after deducting investment expenses, a return of 3.6% (2018: 0.7%).</p>
<p>Given the strength of markets in 2019, we do not expect a repeat in the year ahead. Government bond yields are lower and corporate bond spreads look tight. Having re-rated, equity markets are clearly less well placed than after the falls of 2018. Markets also seem relatively sanguine about political instability but this does not mean such events cannot have an impact; there is no shortage of events in the calendar in the year ahead, the US election amongst them. As such, we enter the year more cautiously, but remain prepared to add risk as opportunities present themselves.</p>
<p><strong>People</strong></p>
<p>Building an insurance business requires a pile of money and a group of talented people. As capital will follow talent, we put a disproportionate effort on attracting, developing, retaining and rewarding talented people. This is a never-ending effort with different approaches being used at different levels of seniority.</p>
<p>In 2019 across Hiscox we received around 50,000 applicants for advertised roles, and hired 867. As a parent of children applying for junior roles, I became aware that for many companies the recruitment process can be like a black hole - you apply and hear nothing, not even an acknowledgement. Hiscox was better than this, but not always good enough. In 2019 we re-engineered our approach to job seekers, thinking of them with the same care and intelligence that we apply to customers. We introduced a net promoter score for all applicants, a brave decision when we have 58 rejections for every successful applicant. I am pleased to report that our net promoter score amongst those who were unsuccessful after interview improved by 26 points over the year, a real vindication of a recruitment approach much more in tune with our ‘human’ value. </p>
<p>For many years at a senior level, we have practised personalised career development and succession planning to ensure that we have the right mix of leadership experience, underwriting nous, business acumen and technical skills to drive the Group forward – and it is working. Individual development plans fit in with global succession plans, as we have seen with the recent appointment of Joanne Musselle as Group Chief Underwriter who replaced Richard Watson on his retirement outlined in the Chairman’s statement. Similarly, in April 2019 Bob Thaker was appointed CEO of Hiscox UK, after an internal and external search. Bob joined Hiscox ten years ago in a Group strategy role and has worked in UK Claims, Hiscox Asia as Chief Operating Officer and then Chief Executive. He was replaced in Asia by Celine Chotithamaporn, an external hire who brings valuable local cultural and industry knowledge. </p>
<p>In 2019 we welcomed Grace Hanson as our new Chief Claims Officer, again after an internal and external search. Grace has held multiple roles in the industry in the US and Bermuda, and she brings a unique blend of experience in both big-ticket and smaller-ticket retail claims. We are already benefiting from her broad experience as she directs the re-engineering of our US claims function.</p>
<p>We believe that this approach - looking ahead, taking career risks on talent, but looking externally as well, ensures smoother senior leadership transitions, to the benefit of the individuals, the business and shareholders.</p>
<p><strong>Purpose and values</strong></p>
<p>During the year we undertook a Group-wide conversation and workshop process to define our purpose and update our values. This involved over 500 staff from all geographies and seniorities. We last did this five years ago. </p>
<p>We see our purpose as ‘As experts in risk, we give people and businesses the confidence to realise their ambitions’. Whether they are a small business, a large corporate, a homeowner or a collector, we believe our expertise and clear products are a safety net, giving our clients confidence. If a loss occurs their claim will be handled sympathetically, professionally and fairly. If we do this well our customers are free to do what they want to do most – pursue their ambitions with confidence.</p>
<p>Our values evolve as our business and the societies we serve evolve. Our refreshed values are:</p>
<p>Integrity – do the right thing, no matter how hard.<br />
Courage – dare to take a risk.<br />
Human – clear, fair and inclusive.<br />
Connected – together, build something better.<br />
Ownership – passionate, commercial and accountable.</p>
<p>Most businesses have values. The challenge is to believe in them and then live up to them, accepting that we are all human and will err while we strive to do so. The inclusivity of the process we went through in updating our purpose and values showed the real passion our staff have for living the values, and we have all committed to use them as a reference point in our day-to-day and longer-term decision-making. We believe that by trying to do so, we make better decisions, make Hiscox a better business to work with and a better place of employment for talented ambitious people, to the ultimate benefit of customers, staff, shareholders and society.</p>
<p><strong>Outlook</strong></p>
<p>I am excited and optimistic about the scale of opportunity we have ahead of us. </p>
<p>In the short-term we will take advantage of the strong pricing momentum in our London Market business, navigate our way through the pricing challenges in reinsurance and continue to build our profitable Retail businesses. Our success in this will be reflected in our 2020 earnings.</p>
<p>Looking further ahead, we are still a small and successful player in many of our areas with plenty of room to grow. Our strategy of balance, between big-ticket lines and our more steady retail earnings, continues to provide us with options. We have made investments in people, brand and infrastructure that will help us deliver our ambition to be the leading specialist insurer in the markets in which we operate – leading in growth rate, profitability and reputation.</p>
<p><strong>Bronek Masojada<br />
2 March 2020</strong></p>
<p>*These figures have been restated to reflect previously announced tax provisions. See note 2.2 of the financial statements </p>
Mon, 02 Mar 2020 07:00:00 +0000Anonymous46861 at https://www.hiscoxgroup.comHiscox introduces smart water leak technologyhttps://www.hiscoxgroup.com/news/press-releases/2020/10-02-20
<span>Hiscox introduces smart water leak technology</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/3931" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">Danny</span></span>
<span>10th February 2020</span>
<p><strong>London (10 February 2020) </strong>– Specialist insurer Hiscox today announces a partnership with LeakBot, the smart water leak alarm, to provide its leading leak detection system to customers<sup><span lang="EN-GB" style="font-size:11.0pt" xml:lang="EN-GB" xml:lang="EN-GB"><span style="line-height:107%"><span style="font-family:"Calibri","sans-serif""><span style="color:black">1</span></span></span></span></sup>. Helping to protect homes from water damage in the event of a leak, the partnership will make Hiscox the first UK insurer to offer a free Leakbot to all new and existing buildings insurance customers. </p>
<p>With the average cost of damage caused by escape of water estimated to be £8,500<sup><span lang="EN-GB" style="font-size:11.0pt" xml:lang="EN-GB" xml:lang="EN-GB"><span style="line-height:107%"><span style="font-family:"Calibri","sans-serif""><span style="color:black">2</span></span></span></span></sup>, this is the biggest driver of home insurance claims globally<sup><span lang="EN-GB" style="font-size:11.0pt" xml:lang="EN-GB" xml:lang="EN-GB"><span style="line-height:107%"><span style="font-family:"Calibri","sans-serif"">3</span></span></span></sup>. In the UK and US alone, the annual cost to insurers is estimated to be $16bn<sup><span lang="EN-GB" style="font-size:11.0pt" xml:lang="EN-GB" xml:lang="EN-GB"><span style="line-height:107%"><span style="font-family:"Calibri","sans-serif"">4</span></span></span></sup>.<br />
<br />
LeakBot is an end-to-end claims mitigation system, specifically designed to tackle water damage claims in the home. The device uses patented Thermi-Q technology to detect water leaks, without the need for professional installation. It connects to the home wireless network and, if it detects a leak, notifies the customer via a mobile app, providing access to a team of expert LeakBot engineers to ‘find and fix’ the problem. </p>
<p><strong>Phil Thorn, Head of Propositions at Hiscox UK said</strong>: “Much like our customers, our goal is to protect their homes and smart solutions like LeakBot will become an increasingly fundamental part of this. It’s often the smallest, hidden leaks that go undetected and ultimately cause the most damage, so spotting these early is essential. Whether it’s a burst pipe or just a leaking tap, Hiscox is covering the cost of one specialist engineer visit per year to ensure expert support is on hand if a leak is detected.</p>
<p>“We have successfully trialled LeakBot with select customers over the last year and have been impressed with the results. It’s easy to set up, discreet, provides real-time alerts and is backed by a UK-wide team of engineers.”</p>
<p><strong>Craig Foster, CEO, LeakBot, said:</strong> “We are excited to announce Hiscox as our first UK insurance partner to offer LeakBot to all of their new and existing customers. This partnership will see the major rollout of LeakBot across homes in the UK, which will significantly reduce problems caused by escape of water damage. LeakBot is a pioneer in addressing the problem of unnecessary escape of water claims and we look forward to providing great value to Hiscox and their customers.”</p>
<p><strong>Ends</strong></p>
<p><strong>Notes to editors:</strong></p>
<p>This press release is intended for journalist information only</p>
<p>1. The LeakBot smart water device and one engineer visit per year at no extra cost is available to new and existing Hiscox buildings insurance customers. For more information visit <a href="https://www.hiscox.co.uk/home-insurance/leakbot" target="_blank" title="Leakbot">www.hiscox.co.uk/home-insurance/leakbot-info</a><br />
2. 2018 average cost of all Hiscox Home Insurance closed escape of water claims <br />
3. <a href="https://www.abi.org.uk/globalassets/files/publications/public/key-facts/abi-key-facts-2019.pdf" target="_blank" title="ABI key facts">ABI UK Insurance Key Facts</a><br />
4. ABI UK iii.org and FCA </p>
<p>For further information please contact:</p>
<p><strong>LeakBot media contact:</strong><br />
Megan Hughes-Evans / Edward Butterfield<br />
0207 291 0238<br /><a href="mailto:LeakBot@diffusionpr.com">LeakBot@diffusionpr.com </a> </p>
<p><strong>Hiscox media contact:</strong><br />
Katie Bergin<br />
+44 (0)787 295 3065<br /><a href="mailto:Katie.bergin@hiscox.com">Katie.bergin@hiscox.com</a></p>
<p><strong>About The Hiscox Group</strong></p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2018 saw the business deliver a profit before tax of $137.4 million in a challenging year for insurers.</p>
<p>The Hiscox Group employs over 3,300 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, ownership, courage and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.</p>
<p><strong>About LeakBot</strong></p>
<p>LeakBot is a smart water leak alarm, which spots hidden leaks before they become bigger problems. The device aims to help protect homes from the impact of water damage - the second biggest driver of home insurance claims. LeakBot uses its patented Thermi-Q technology to detect water leaks in the home, without the need for professional installation. It connects to the home wireless network and, if it detects a leak, notifies the customer via the LeakBot mobile app and provides access to a team of expert LeakBot engineers to ‘find and fix’ the problem. </p>
<p>LeakBot was designed and created by HomeServe Labs, in Walsall in the West Midlands, UK. Since launch, LeakBot has partnered with a number of the UK’s major home insurers to supply LeakBot to some of their customers to help reduce the risk of claims caused by water damage at home, including Hiscox, Aviva, Neos, RSA, Legal & General and Covéa Insurance. Hiscox is the first to offer this to all qualifying customers.</p>
<p>LeakBot can also be purchased online for £149. For more information visit <a href="https://leakbot.io/" target="_blank">https://leakbot.io/</a></p>
Mon, 10 Feb 2020 10:14:04 +0000Danny46796 at https://www.hiscoxgroup.comHiscox appoints James Millard as new Chief Investment Officerhttps://www.hiscoxgroup.com/news/press-releases/2020/06-01-20
<span>Hiscox appoints James Millard as new Chief Investment Officer</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/3931" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">Danny</span></span>
<span>6th January 2020</span>
<p><strong>Hamilton, Bermuda, 6th January 2020</strong> - Specialist global insurer Hiscox today announces the appointment of James Millard as its new Chief Investment Officer for the Group. James will be responsible for overseeing the management of its $6.4 billion of assets, implementing overall investment policy and directing all portfolio management, research, trading and strategy. He will be based in London and report to Aki Hussain, Group Chief Financial Officer.</p>
<p>James has a wealth of experience across investment management, most recently at Aberdeen Standard Investments (ASI) where he held the post of Co-Head of Multi-Manager Strategies, overseeing the management of £27 billion of assets. Previously, he was Chief Investment Officer at Skandia Investment Group until its merger with Old Mutual Asset Managers, where he became Director of Investments and a member of the executive management team of Old Mutual Global Investors. </p>
<p>Aki commented: “James’ track record of success in managing large, diverse investment portfolios across multiple asset classes makes him an excellent addition to our business. His results-oriented approach is in line with the strengths and discipline of our investment team. I look forward to working with him to deliver our investment strategy.”</p>
<p><strong>Ends</strong></p>
<p>For further information please contact:</p>
<p><strong>Hiscox Ltd</strong><br />
Carmel McCarthy +44 (0)20 7081 4636</p>
<p><strong>Notes to editors:</strong></p>
<p><strong>About The Hiscox Group</strong></p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It's a long-standing strategy which in 2018 saw the business deliver a profit before tax of $137.4 million in a challenging year for insurers.</p>
<p>The Hiscox Group employs over 3,300 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, ownership, courage and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. </p>
Mon, 06 Jan 2020 12:24:31 +0000Danny46751 at https://www.hiscoxgroup.comHiscox publishes 2019 gender pay reporthttps://www.hiscoxgroup.com/news/press-releases/2019/18-12-19
<span>Hiscox publishes 2019 gender pay report</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/3931" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">Danny</span></span>
<span>18th December 2019</span>
<p>Today we have published our 2019 UK gender pay report, a requirement for all UK companies with 250 or more employees to measure the difference in pay between men and women across a company’s workforce, regardless of seniority or type of role.</p>
<p>Click <a href="https://www.hiscoxgroup.com/sites/group/files/documents/2019-12/Hiscox-gender-pay-report-2019.pdf" target="_blank" title="Hiscox gender pay report 2019">here</a> to access a copy of the full report.</p>
Wed, 18 Dec 2019 10:09:54 +0000Danny46746 at https://www.hiscoxgroup.comRobert Read from Hiscox comments on the Dresden Green Vault robberyhttps://www.hiscoxgroup.com/news/press-releases/2019/25-11-19
<span>Robert Read from Hiscox comments on the Dresden Green Vault robbery</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2801" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">abi</span></span>
<span>25th November 2019</span>
<p><strong>London (25 November, 2019) </strong>– Robert Read, Head of Art and Private Clients at specialist insurer Hiscox, comments on the robbery from the Dresden Green Vault in Germany:</p>
<p>“It’s the festive season and everybody goes shopping - art criminals are no different and at this time of year jewellery and works of art which contain a significant amount of precious metals and stones are often targeted. The awful theft in Dresden this morning shows just that. The thieves now face a major logistical nightmare trying to transform their ill-gotten loot into clean money and that process will offer detectives the best way to track them down. Let’s hope that they succeed and a great museum gets back what is rightly theirs.”</p>
<p><strong>Ends </strong></p>
<p><strong>For further information or to arrange an interview, please contact: </strong></p>
<p><strong>Hiscox Ltd</strong></p>
<p>Kylie O'Connor +44 (0)20 7448 6656 <a href="mailto:kylie.oconnor@hiscox.com">kylie.oconnor@hiscox.com</a></p>
<p><strong><u>Notes to editors</u></strong></p>
<p><strong>About The Hiscox Group</strong></p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2018 saw the business deliver a profit before tax of $137.4 million in a challenging year for insurers.</p>
<p>The Hiscox Group employs over 3,300 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, ownership, courage and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a data-mce-href="http://www.hiscoxgroup.com/" href="http://www.hiscoxgroup.com/"><u><font color="#0066cc">www.hiscoxgroup.com</font></u></a>.</p>
Mon, 25 Nov 2019 15:36:56 +0000abi46716 at https://www.hiscoxgroup.comAppointment of Group Chief Underwriting Officerhttps://www.hiscoxgroup.com/news/press-releases/2019/05-09-19
<span>Appointment of Group Chief Underwriting Officer</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/3931" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">Danny</span></span>
<span>5th September 2019</span>
<p><strong>Hamilton, Bermuda (5 September 2019)</strong> – Hiscox today announces the appointment of Joanne Musselle as its new Group Chief Underwriting Officer, after concluding a thorough internal and external search. Joanne is currently Chief Underwriting Officer for Hiscox Retail, the Group’s largest division. She will step into the role at the end of the year following Richard Watson’s retirement which was announced in June, and join the Hiscox Ltd Board as an Executive Director in February 2020, subject to regulatory consent. </p>
<p>Joanne has been with Hiscox for 17 years, having joined the UK business in 2002 as Technical Underwriting Manager for professions and specialty commercial lines. Since then she has held a variety of senior roles including Head of UK Claims and Chief Underwriting Officer for Hiscox UK and Ireland before taking on the newly-created position of Chief Underwriting Officer for Hiscox Retail in 2018. Prior to Hiscox, Joanne spent almost 10 years working in a variety of actuarial, pricing and reserving roles at AXA and Aviva in both the UK and Asian markets. </p>
<p>In her current role, Joanne is responsible for all retail underwriting across the Hiscox Group, including Hiscox UK, Hiscox Europe, Hiscox USA, Hiscox Special Risks and Hiscox Asia. In the last two years, she has overseen profitable growth in GWP of almost 25% across the retail portfolio and helped our retail businesses to navigate increased volumes of regulatory change. She already sits on a number of subsidiary boards in the Hiscox Group, as well as being Active Underwriter for Syndicate 3624 and a Hiscox Partner. In addition, Joanne is actively involved in industry initiatives, having been an ABI industry forum member since 2013 and serving as a workstream Chair of the Chartered Insurance Institute’s Insuring Women’s Futures initiative since 2017.</p>
<p>Bronek Masojada, Hiscox Group CEO, said: “After a thorough search where we considered a number of strong internal and external candidates, I am pleased to appoint Joanne as our next Group Chief Underwriting Officer. Joanne’s deep understanding of our business and experience of managing underwriting portfolios in our key markets will be critical for our next stage of growth. She has overseen strong, profitable growth in our retail casualty and property portfolios and has confidently led the business through a number of changes in course when market conditions have been tough. Joanne’s commerciality, long-term view and ability to challenge will make her a valuable member of our Executive team.” </p>
<p>Joanne added: “Profitable underwriting is the backbone of Hiscox and I could not be more delighted to serve the Group in this broader role. Being part of the evolution of Hiscox over the last 17 years has given me many experiences and opportunities across the whole of our business and I am excited to be taking up this next challenge.” </p>
<p>There are no other details that are required to be disclosed in respect of the appointment of Joanne Musselle under 9.6.13R of the Listing Rules of the Financial Conduct Authority. </p>
<p><strong>Ends </strong></p>
<p>For further information please contact:</p>
<p><strong>Hiscox Ltd</strong><br />
Marc Wetherhill, Group Company Secretary, Bermuda <a href="tel:+1 441 278 8321">+1 441 278 8321</a><br />
Ryan Thompson, Investor Relations Manager, London <a href="tel:+44 (0)20 7448 6522">+44 (0)20 7448 6522</a></p>
<p>Brunswick<br />
Tom Burns <a href="tel:+44 (0)20 7404 5959">+44 (0)20 7404 5959</a><br />
Simone Selzer <a href="tel:+44 (0)20 7404 5959">+44 (0)20 7404 5959</a></p>
<p><strong>Notes to editors:</strong></p>
<p>Photos are available to download in our <a href="https://www.hiscoxgroup.com/news/image-library" title="Image library">image gallery</a>.</p>
<p><strong>About The Hiscox Group</strong></p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It's a long-standing strategy which in 2018 saw the business deliver a profit before tax of $137.4 million in a challenging year for insurers.</p>
<p>The Hiscox Group employs over 3,300 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. </p>
Thu, 05 Sep 2019 06:05:00 +0000Danny46576 at https://www.hiscoxgroup.com2019 Interim Resultshttps://www.hiscoxgroup.com/news/press-releases/2019/29-07-19
<span>2019 Interim Results</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/3931" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">Danny</span></span>
<span>29th July 2019</span>
<p>For the six months ended 30 June 2019</p>
<p>"A positive result in a changing market"</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><thead><tr><th scope="col"> </th>
<th scope="col"><strong>H1 2019</strong></th>
<th scope="col"><strong>H1 2018</strong></th>
</tr></thead><tbody><tr><td>Gross premiums written</td>
<td>$2,337.5m</td>
<td>$2,228.8m</td>
</tr><tr><td>Net premiums earned</td>
<td>$1,313.8m</td>
<td>$1,277.9m</td>
</tr><tr><td>Profit before tax</td>
<td>$168.0m</td>
<td>$162.7m</td>
</tr><tr><td>Earnings per share ($)</td>
<td>51.2¢</td>
<td>52.2¢</td>
</tr><tr><td>Earnings per share (£)</td>
<td>39.6p</td>
<td>38.0p</td>
</tr><tr><td>Interim dividend per share</td>
<td>13.75¢</td>
<td>13.25¢</td>
</tr><tr><td>Net asset value per share ($)</td>
<td>817.0¢</td>
<td>833.7¢</td>
</tr><tr><td>Net asset value per share (£)</td>
<td>641.9p</td>
<td>633.6p</td>
</tr><tr><td>Group combined ratio</td>
<td>98.8%</td>
<td>87.9%</td>
</tr><tr><td>Return on equity (annualised)</td>
<td>13.3%</td>
<td>13.3%</td>
</tr><tr><td>Investment return (annualised)</td>
<td>4.8%</td>
<td>0.7%</td>
</tr><tr><td>Foreign exchange gains / (losses)</td>
<td>$15.6m</td>
<td>$(8.5)m</td>
</tr><tr><td>Reserve releases</td>
<td>$26m</td>
<td>$154m</td>
</tr></tbody></table><p><strong>Highlights</strong></p>
<ul><li>Gross premiums written up 7% in constant currency, with all business segments growing.</li>
<li>Profit before tax up 3% to $168 million, driven by a good investment return of 4.8% annualised.</li>
<li>Interim dividend up 4% to 13.75¢.</li>
<li>The Group experienced a higher volume of claims in the first half of 2019 than the same period last year. </li>
<li>Reserves have been strengthened for prior-year claims from Typhoon Jebi, Hurricane Michael and the risk excess book, as industry loss estimates have increased.</li>
<li>Retail growth has moderated as planned, due to on-going discipline in US private company directors and officers' (D&O) business and as Hiscox UK adapts to new IT systems. </li>
<li>Hiscox Re and Hiscox London Market are capitalising on opportunities as they arise, as pricing momentum continues to build. </li>
</ul><p>Bronek Masojada, Chief Executive Officer, Hiscox Ltd, commented:</p>
<p>"Hiscox delivered a profit of $168 million for the first half despite a more challenging claims experience. Looking ahead, with six consecutive quarters of rate growth in some Lloyd's business, the market is in a better position than it has been for some time. In Retail, we will continue to invest in our infrastructure and marketing to drive sustainable growth. Our strategy of diversification gives us options." </p>
<p><strong>ENDS</strong></p>
<p><strong>For further information </strong></p>
<p><strong>Hiscox Ltd </strong><br />
Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8300<br />
Kylie O’Connor, Head of Group Communications, London +44 (0)20 7448 6656<br />
Ryan Thompson, Investor Relations Manager, London +44 (0)20 7448 6522</p>
<p><strong>Brunswick </strong><br />
Tom Burns +44 (0)20 7404 5959<br />
Simone Selzer +44 (0)20 7404 5959</p>
<p><strong>Notes to editors</strong></p>
<p><strong>About The Hiscox Group </strong><br />
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It's a long-standing strategy which in 2018 saw the business deliver a profit before tax of $137.4 million in a challenging year for insurers.</p>
<p>The Hiscox Group employs over 3,300 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a href="http://www.hiscoxgroup.com">www.hiscoxgroup.com</a>.</p>
<p><strong>Chairman’s statement</strong></p>
<p>I am pleased to report that the Group has delivered a pre-tax profit of $168.0 million (2018: $162.7 million) and grown gross premiums written by 4.9% to $2,337.5 million (2018: $2,228.8 million) in the first six months of 2019. Every business segment grew and Hiscox Retail was once again the main profit generator, albeit in a more active period for claims. In aggregate we have experienced favourable reserve development, however there have been some adverse movements on industry losses and reserve strengthening in some exited lines. The effects of these have been more than offset by strong investment returns, as we have benefited from financial market movements in the first half. </p>
<p>In Retail, growth has moderated as we exercise discipline in US private company directors and officers' (D&O), and implement new systems and ways of working in the UK. In our London Market business, market losses and renewed discipline in Lloyd's are putting upward pressure on rates, and the picture looks more positive than this time last year. In reinsurance, where rate improvement had been more sporadic in the first quarter, we have seen good price increases on loss-affected risks in the second quarter and are finding opportunities in the retrocession market, where reduced capacity has significantly improved rates.</p>
<p>As ever, the results of the half year are no indication of the results of the full year, so as we approach hurricane season there is still potential for the wind to blow us off course.</p>
<p><strong>Results</strong></p>
<p>The result to 30 June 2019 was a pre-tax profit of $168.0 million (2018: $162.7 million). Gross premiums written increased by 4.9% to $2,337.5 million (2018: $2,228.8 million), or 6.8% in constant currency. Net earned premiums were $1,313.8 million (2018: $1,277.9 million). The combined ratio was 98.8% (2018: 87.9%). Earnings per share were 51.2 cents (2018: 52.2 cents) or 39.6 pence (2018: 38.0 pence) and net assets per share reduced to 817.0 cents (2018: 833.7 cents) or 641.9 pence (2018: 633.7 pence). The annualised return on equity was 13.3% (2018: 13.3%).</p>
<p>As mentioned in the recent trading update, the Group has made an additional tax provision for the half year with an impact of $58 million. This is presented as a prior-year adjustment and does not affect the current year results. This additional tax provision includes a reappraisal of how Hiscox has invested in and classified marketing activity historically. The Group does not expect any further charges to arise and re-affirms its current guidance of 10-12% on its effective tax rate.</p>
<p><strong>Dividend, balance sheet and capital management</strong></p>
<p>The Board is pleased to announce an interim dividend per share of 13.75 cents, representing a 3.8% increase on the 2018 interim dividend. The record date for the dividend will be 9 August 2019 and the payment date will be 11 September 2019.</p>
<p>The Board proposes to offer a scrip alternative subject to the terms and conditions of Hiscox Ltd's 2019 Scrip Dividend Scheme. The last date for receipt of Scrip elections will be 16 August 2019 and the reference price will be announced on 27 August 2019.</p>
<p>Further details on the dividend election process and Scrip alternative can be found on the investor relations section of our corporate website, www.hiscoxgroup.com.</p>
<p><strong>Rates</strong></p>
<p>In Hiscox Retail, rates have been broadly flat. In the UK, competition in commercial lines is being balanced out by improved household rates, where a prevalence of escape of water claims continue to place upward pressure on prices in the market.</p>
<p>In Hiscox London Market, we have seen good rate momentum, with rates up approximately 5% across the portfolio, helped by the Lloyd's Decile 10 directive and the cumulative impact of two consecutive years of large market losses. We have seen most pronounced increases in US public company D&O, cargo, marine hull, major property and household.</p>
<p>In Hiscox Re & ILS, rates are up approximately 6% across the portfolio with increases confined generally to loss-affected accounts, as an abundance of capital continues to dampen a widespread market turn. During the April renewals, when the majority of Japanese business renews, we achieved rate increases of 8% overall, while in June, when a lot of Florida-based wind-exposed business renews, rates increased by 12%. We continue to see opportunities in the retrocession market, where reduced capacity combined with several years of losses is contributing to material rate-hardening.</p>
<p><strong>Claims</strong></p>
<p>As mentioned in our recent trading update, the insurance market has seen continued deterioration from 2018 catastrophe events, including Typhoon Jebi in Japan and Hurricane Michael in Florida. The scale of deterioration has been significant, with industry loss estimates having increased materially since these events. As a result, the Group has strengthened reserves for prior-year claims from Typhoon Jebi, Hurricane Michael and for the risk excess book. The combined impact of reserve strengthening for these events is approximately $40 million net. Last year, the Group benefited from prior-year releases from Hurricanes Harvey, Irma and Maria, which totalled $25 million, however we did not have that same benefit this year.</p>
<p>The Group has also strengthened reserves for some exited classes, including healthcare, by $10 million. Reserving for other prior year attritional and large losses amounts to $53 million.</p>
<p>After a particularly benign start to 2018, our retail businesses have encountered a more normal loss experience so far this year, and we expect this to continue in the second half. This includes a higher volume of claims in US D&O for private companies, where we have reduced our exposure and continue to do so. We expect the full year combined ratio for Hiscox Retail to be at the top end of our 90-95% range.</p>
<p>Reserve releases for the first half were $26 million (2018: $154 million), and we expect second half reserve releases to be below $100 million (2018: $168 million). Our prudent approach to reserving has not changed. </p>
<p><strong>Hiscox Retail</strong></p>
<p>Hiscox Retail comprises all our retail businesses around the world; Hiscox UK, Hiscox Europe, Hiscox USA, Hiscox Special Risks and Hiscox Asia. In this segment, our specialist knowledge and retail products differentiate us and our on-going investment in the brand helps us build a strong market position. Hiscox Retail is the single biggest segment in the Group and delivered most of the profit for the Group in the first half.</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><tbody><tr><td>Gross premiums written</td>
<td>$1,154.6 million (2018: $1,113.0 million)</td>
</tr><tr><td>Profit before tax</td>
<td>$137.7 million (2018: $100.0 million)</td>
</tr><tr><td>Combined ratio</td>
<td>95.0% (2018: 90.7%)</td>
</tr></tbody></table><p><em><strong>Hiscox UK</strong></em></p>
<p>Hiscox UK provides commercial insurance for small- and medium-sized businesses as well as personal lines cover, including high-value household, fine art and luxury motor.</p>
<p>While gross premiums written reduced by 1.7% to $378.5 million (2018: $385.2 million), the business grew by 4.3% in constant currency.</p>
<p>Our broker business had a challenging 2018 as it adapted to a new system with new ways of working, which impacted growth. In the first half of this year we have made good progress, with service levels improving and work on track to be completed by the year-end. However, as we have previously said, growth will remain subdued until these changes are fully embedded.</p>
<p>The direct-to-consumer market remains competitive, particularly in commercial lines. Despite this we are operating in healthy niche markets and have been able to grow premiums by around 10%. Our investment in marketing continues to differentiate us, and we will look to build on the success of our campaigns in the second half.</p>
<p>Cyber is still a growth area for the Group and in March we launched a new and enhanced product called CyberClear at an event attended by over 350 brokers and business partners. The new product provides market-leading protection to our UK customers and we are proud that it has been rated the most comprehensive cyber insurance policy for SMEs as the first and only policy to receive a 100% score in the Insurance Times Cyber Product Report.</p>
<p>Bob Thaker transferred from Hiscox Asia to take up the role of Hiscox UK CEO during the period. After over four years leading our business in Asia, the UK is already benefiting from his experience of building a business in a competitive market with high customer expectations.</p>
<p><strong><em>Hiscox Europe</em></strong></p>
<p>Hiscox Europe provides personal lines cover, including high-value household, fine art and classic car; as well as commercial insurance for small- and medium-sized businesses.</p>
<p>Hiscox Europe is doing very well and delivered a strong performance, with gross premiums written growing by 9.0% to $245.1 million (2018: $224.8 million¹), or 17.0% in constant currency. The business has benefited from the transfer of Hiscox Ireland and a number of European underwriting partnerships from Hiscox UK to Hiscox Europe as part of our previously mentioned Brexit-related structural changes.</p>
<p>Spain and Germany are again the main drivers of growth, with professional indemnity and cyber - where we are maintaining our leadership position - performing particularly well. </p>
<p>Hiscox Spain is benefiting especially from the 'MyHiscox' broker extranet which we rolled out in 2018 across Europe. The team is also looking at a number of partnership opportunities in the technology and insurtech space.</p>
<p>In Hiscox Germany, we launched our new CyberClear product in the second quarter, which has been well received by the market. We are growing our team in Munich and will expand our footprint in Germany with new offices in Berlin and Stuttgart later in the year.</p>
<p>Hiscox Benelux experienced good growth in the first half, with art and private client and commercial lines performing well. In classic car, work is under way to strengthen our presence with new offerings for the classic car segment, such as a new motor liability solution. Our online broker business also continues to perform well in The Netherlands, and the roll-out of the 'MyHiscox' portal will continue in Belgium later this year with cyber and professional indemnity solutions.</p>
<p>In Hiscox France, partnerships with well-known financial institutions continue to be an important distribution channel, and we are adding new products such as cyber to existing relationships. </p>
<p>Following Hiscox Ireland's transfer into Hiscox Europe, we have increased our local presence in Dublin, with new office space and new hires, and the team has settled in well to their new home within the Group.</p>
<p><strong><em>Hiscox USA</em></strong></p>
<p>Hiscox USA underwrites small- to mid-market commercial risks through brokers and directly to businesses online and over the telephone. We also partner with other insurers who sell Hiscox products.</p>
<p>Gross premiums written increased by 3.1% to $437.1 million (2018: $423.9 million), driven by growth in our direct and partnerships division where we now have over 320,000 customers. Our marketing and brand-building efforts are critical to powering our growth, and we intend to increase our marketing spend in the second half.</p>
<p>In the broker channel, we remain disciplined, focusing on profitable sectors and not chasing premium at the expense of quality. For example, strong competition in the cyber market means we are being selective and growing cautiously. In D&O, we are doing what we said we would and remain on-track to shrink the book by more than half in response to increased claims volumes and rate inadequacy in the market. This action is necessary and will improve profitability in the longer term. We have taken similar corrective action to improve profitability in media and entertainment, as previously disclosed, and this work is also progressing as planned.</p>
<p>As we said previously, we expect growth for Hiscox USA to trend towards the mid-point of our 5-15% target range for our retail businesses in the second half.</p>
<p>The long-term opportunity for our US business is significant, and with our share of less than 1% of a highly-fragmented market, we are still early in our journey.</p>
<p><strong><em>Hiscox Special Risks</em></strong></p>
<p>Hiscox Special Risks underwrites kidnap and ransom, security risks, personal accident, classic car, jewellery and fine art. Hiscox Special Risks has teams in London, Guernsey, Cologne, Munich, Paris, New York, Los Angeles and Miami.</p>
<p>Gross premiums written reduced by 4.0% to $67.0 million (2018: $69.8 million) during the first half of the year. Over 30% of Special Risks' business comes from multi-year policies, which is reflected in these figures. On an underlying basis, growth was stable.</p>
<p>In kidnap and ransom, market conditions remain challenging, with increased competition and pricing pressure. Our expertise and relationships in this area are helping us to maintain our leadership position in the market. </p>
<p>Our Security Incident Response (SIR) product continues to perform well and during the period we launched an enhanced version that provides additional protection for business integrity risks such as bribery and corruption, embezzlement and financial statement fraud. The product now covers 19 additional insured events and we will continue to evolve it in line with the ever-changing risk and security landscape.</p>
<p>Recent political tensions with Iran have resulted in a heightened state of alert for marine clients travelling in the Gulf. In response to this, within a week, the team developed and delivered to market a new product that focuses specifically on providing crisis management support and loss of hire indemnity if a vessel is detained or seized. New insurance products rightly come under a lot of scrutiny and need to go through a robust product governance process before launch, so I am delighted that we have been able to respond swiftly and provide real value for our clients when they need it most.</p>
<p><strong><em>Hiscox Asia</em></strong></p>
<p>Our brand in Asia, DirectAsia, is a direct-to-consumer business in Singapore and Thailand that sells predominantly motor insurance, acquired by Hiscox in April 2014.</p>
<p>The business achieved gross premiums written of $26.9 million (2018: $9.3 million) during the first half of the year. Excluding an adjustment for premium written via an agency into Hiscox Insurance Company (Bermuda) Limited, gross premiums written were $18.6 million (2018: $13.4 million). Both Singapore and Thailand have had consecutive record-breaking months for car and motorcycle insurance sales, driven by the success of new partnerships, and we continue to seek similar partnerships with like-minded businesses. </p>
<p>With Bob Thaker's return to the UK, we have appointed a new Managing Director, Sirinthip (Celine) Chotithamaporn. Celine has been instrumental in launching two start-ups in Thailand and has significant insurance experience, including most recently as President and CEO of Allianz Thailand. Her expertise will be valuable as we focus on reaching scale and we are delighted to have her on board.</p>
<p><strong>Hiscox London Market</strong></p>
<p>This segment uses the global licences, distribution network and credit rating available through Lloyd's to insure clients throughout the world.</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><tbody><tr><td>Gross premiums written</td>
<td>$484.6 million (2018: $458.7 million)</td>
</tr><tr><td>Profit before tax</td>
<td>$34.4 million (2018: $42.7 million)</td>
</tr><tr><td>Combined ratio</td>
<td>103.3% (2018: 88.6%)</td>
</tr></tbody></table><p>Gross premiums written in Hiscox London Market increased by 5.6% to $484.6 million (2018: $458.7 million), or 6.6% in constant currency.</p>
<p>Rate improvements driven by the Lloyd's Decile 10 directive, of which we have been great supporters, and recent market losses, has led to good growth in many of our core lines including D&O, cargo, marine hull, major property and household. We continue to lead consortia for general liability, flood and product recall which gives us additional scale and prominence in the market.</p>
<p>Like others in the market, Hiscox London Market has been impacted by a deteriorating loss experience from Hurricane Michael, where assignment of benefits - a practice where insureds can pass on the claims recovery rights to a more aggressive third party - has challenged the market in Florida. Legislation to reform the practice was passed in April, and we hope will provide more stability in the market and fairer outcomes for customers.</p>
<p>In May, we launched a new CyberClear product for the London Market with a first-of-its-kind experiential event on the underwriting floor at Lloyd's. <em><strong>'The Cube'</strong></em> aimed to test the market's cyber knowledge, and attracted more than 150 brokers and underwriters.</p>
<p>In terrorism, our new malicious attack product has been well received by the market. It provides cover for property damage, business interruption, loss of attraction and crisis management assistance in an event involving a vehicle, explosive device or hand-held weapon.</p>
<p>Our adoption of Placing Platform Ltd (PPL), part of the Lloyd's Target Operating Model work to move to digital trading, remains on track and we are currently placing over half of all syndicate risks in this way. We continue to work closely with our broker partners to meet the ambitious targets for the remainder of this year.</p>
<p><strong>Hiscox Re & ILS</strong></p>
<p>The Hiscox Re & ILS segment comprises the Group's reinsurance businesses in London and Bermuda and insurance-linked security (ILS) activity written through Hiscox ILS.</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><tbody><tr><td>Gross premiums written</td>
<td>$698.3 million (2018: $655.6 million)</td>
</tr><tr><td>Profit before tax</td>
<td>$14.0 million (2018: $57.8 million)</td>
</tr><tr><td>Combined ratio</td>
<td>111.3% (2018: 71.5%)</td>
</tr></tbody></table><p>Gross premiums written grew by 6.5% to $698.3 million (2018: $655.6 million), or 7.6% in constant currency.</p>
<p>While we are seeing some positive rate momentum, particularly in those lines hardest hit by two consecutive years of losses, this is dampened by the continued abundance of reinsurance capacity available from traditional and alternative sources. We have responded rationally, growing in wildfire liability where we have seen rate increases of up to 200%, and managing wildfire-exposed property business where rates in some cases have not responded in line with our view of the risk.</p>
<p>In the risk excess book, we are reducing our exposure on the bottom end of programmes and pushing for more risk-reflective pricing, particularly in risk aggregate where we have seen heavy losses and some underperformance in recent years. </p>
<p>Like others in the market, we have seen some deterioration in claims resulting from Typhoon Jebi, the most powerful typhoon to hit Japan, as severe winds impacted an area of high-value construction ahead of the upcoming Olympic Games and Rugby World Cup. This has caused an unusually large number of claims and increased repair costs due to demand surge.</p>
<p>In Hiscox ILS, our funds have performed in line with expectations. In January, we started writing business to our new fund, the Kiskadee Latitude Fund, which gives investors access to a more diverse portfolio of insurance and reinsurance risks with less focus on pure property catastrophe risk. Assets under management are currently at $1.6 billion.</p>
<p><strong>Investments</strong></p>
<p>The investment return for the first six months of 2019 is $147.5 million (2018: $19.8 million), 4.8% (2018: 0.7%) on an annualised basis before derivatives and fees. Assets under management at 30 June 2019 were $6,367 million (2018: $6,460 million).</p>
<p>After the sharp reversal in conditions towards the end of 2018, markets have been bullish so far in 2019. Global equity markets are up around 16%, where developed markets have outperformed their emerging counterparts year-to-date. Short-dated corporate bonds spreads have fallen by around one-third from recent highs, meaning returns from credit have also been strong. Market behaviour seems at odds with a background of slowing growth and geopolitical tensions such as the US-China trade stand-off, but statements by policymakers seem to explain the apparent dichotomy.</p>
<p>US government bond yields have fallen year-to-date, adding to fixed income returns. This has been driven by a significant shift in policymaker behaviour. Where 2018 was mainly a story of central banks tightening and removing stimulus, 2019 has been the opposite. A year ago, the US Federal Reserve was expected to raise interest rates two or three times in 2019, however they now appear unlikely to raise rates for the remainder of 2019 and the markets are pricing in several cuts. Likewise, the European Central Bank was preparing to unwind its quantitative easing programme, but has now stated its intention to restart stimulus. The targeted long-term refinancing operations, to provide liquidity to banks and support the European economy, are due to be restarted, and further cuts to interest rates and more quantitative easing have not been ruled out. </p>
<p>The risk-on/risk-off environment, where asset returns tend to move together, appears to remain in place. Such volatile environments can be difficult to navigate as they have a tendency to change rapidly and diversifying assets are hard to identify. We remain cautious on our expectations for investment return, keeping risk assets at modest levels (7.5%) and a relatively high allocation to cash at 17.4%, with scope to re-invest as circumstances allow.</p>
<p><strong>Marketing</strong></p>
<p>We now have more than one million retail customers, and our investment in marketing has been a key driver of this growth, by building brand awareness and differentiating us in our key markets. This year we will invest up to $90 million in marketing and brand-building (2018: $69.7 million), mainly in the UK and USA, where we still see significant growth opportunities.</p>
<p>During the first half of the year, we launched our biggest ever integrated campaign in the USA, featuring our first ever US TV advertisements. The <strong><em>'Barcode</em>'</strong> campaign is the latest in our <em><strong>'Encourage Courage'</strong></em> brand series aimed at small businesses, and is supported by a $12 million brand-building investment. We are using highly targeted TV, radio, digital and press for the campaign, including well-known media outlets such as The Wall Street Journal, in addition to sponsorship of Major League Baseball and tailored adverts to mark Small Business Week and International Women's Day.</p>
<p>In the UK, we have focused our activities on cyber to help drive brand awareness and affinity. We partnered with Brompton Bikes to produce <em><strong>'The Hack'</strong></em> video campaign, which brought to life what a cyber attack could look like in the real world, and has achieved more than 25 million views to date. </p>
<p>In both Thailand and Singapore, new marketing campaigns and partnerships helped us to achieve several record-breaking months for car and motorbike policy sales in the first half.</p>
<p><strong>Richard Watson</strong></p>
<p>As previously announced, Richard Watson, our Group Chief Underwriting Officer and Hiscox Ltd Board member, will retire at the end of the year after 33 years at Hiscox. He will be sorely missed in these roles but I am pleased we will continue to benefit from his expertise as a Non Executive Director of Hiscox Syndicates Ltd and as Chairman of Hiscox Re & ILS.</p>
<p>When Richard joined Hiscox in 1986, we were fewer than 30 people underwriting around £80 million of business. He has been central to many of Hiscox's successes over the years; first as named Underwriter of Syndicate 33, then as CEO of Hiscox Global Markets (as we called our entire Lloyd's-based business at the time), CEO of Hiscox USA, and finally as Group Chief Underwriting Officer and a Director of Hiscox Ltd. He has had a remarkable career in insurance, starting off as a broker at Sedgwick's, before joining us as a political risks underwriter. He mastered many lines of business at Hiscox and has always been a guardian of the Hiscox culture. Most recently, he has championed our diversity and inclusion efforts and seen us make good progress in this area.</p>
<p>I have enjoyed working with Richard immensely and profited from his sound judgement and forthright opinions. I would like to thank him for his outstanding contribution to Hiscox and look forward to working with him in his new roles.</p>
<p>Leadership changes can be disruptive, which is why we spend a great deal of time planning for succession throughout the business. A new Chief Underwriting Officer for the Group will be announced in due course.</p>
<p><strong>Outlook</strong></p>
<p>At the full year, I talked about the volume of change impacting the business and our expectation that would continue in 2019.</p>
<p>In Retail, embedding our new IT systems and ways of working has taken more time than we had hoped but the alternative would have been to be strangled by legacy systems as so many of the banks have been. As the year progresses, the UK is resolving its issues and the USA is benefiting from the UK's experience. Such infrastructure is essential for an efficient multi-channel approach, where our products are available for customers to purchase however they choose - whether that is through a broker, online, over the telephone or via an intermediary. We will continue to invest in marketing to build our retail businesses.</p>
<p>In big-ticket lines, we are very supportive of Lloyd's and their drive for positive change. The market must become a more efficient and modern place to operate or it will slowly wither on the vine. Such choices are made easier when there is no choice. I am pleased that our senior leaders are taking an active role in initiatives such as PPL which will define the market's future. The positive momentum for rates in big-ticket lines is good news, and although the benefits will be gradual we are ready to make the most of the opportunities as they arise.</p>
<p>I would like to take this opportunity to thank our employees, shareholders and business partners for their support, and look forward to a productive second half.</p>
<p><strong>Robert Childs<br />
Chairman<br />
29 July 2019</strong></p>
<p><a href="https://www.hiscoxgroup.com/sites/group/files/documents/2019-07/Hiscox%20Ltd%20interim%20results%2029%20July%202019.pdf" target="_blank" title="Hiscox Ltd interim results 2019">View full PDF version</a></p>
Mon, 29 Jul 2019 05:39:39 +0000Danny46551 at https://www.hiscoxgroup.comHiscox Ltd trading updatehttps://www.hiscoxgroup.com/news/press-releases/2019/12-07-19
<span>Hiscox Ltd trading update</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/3931" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">Danny</span></span>
<span>12th July 2019</span>
<p><strong>Hamilton, Bermuda (12 July 2019) -</strong> Hiscox Ltd, the international specialist insurer, provides an update on its financial performance for the first six months of 2019.</p>
<p>The Group expects to deliver a profit before tax for the six months ended 30 June 2019 in the range of $150 million to $170 million. This includes an estimated investment return of $150 million to the end of June, having benefited from further market movements in the second quarter.</p>
<p>The Group also expects Hiscox Retail's combined ratio to be within the normal range of 90-95% at the half year, with growth for the segment in line with the first quarter. As stated in the May trading statement, the Group expects growth for Hiscox Retail to trend towards the mid-point of the normal 5-15% target range in the second half.</p>
<p>The insurance market has seen continued deterioration from 2018 catastrophe events, including Typhoon Jebi in Japan and Hurricane Michael in Florida. The scale of deterioration has been significant, with industry loss estimates having increased materially since these events. As a result, and as previously announced in its first quarter trading statement, the Group has strengthened reserves for prior year claims from Typhoon Jebi, Hurricane Michael and for the risk excess book. The combined impact of reserve strengthening for these events is approximately $40 million net. The absence of prior year releases from Hurricanes Harvey, Irma and Maria, which totalled $25 million in the first six months of 2018, means that the Group expects reserve releases in the first half to be materially lower than last year.</p>
<p>Conditions are improving with good rate momentum for most lines in Hiscox London Market. Hiscox Re & ILS is finding opportunities in the retrocession market, where reduced capacity has significantly improved rates.</p>
<p>The Group expects to make an additional tax provision of up to $60 million for the half year. This will be presented as a prior year adjustment and will not affect the current year results. This additional tax provision includes a reappraisal of how Hiscox has invested in and classified marketing activity historically. The Group does not expect any further charges to arise and re-affirms its current guidance on its effective tax rate.</p>
<p>The Group remains strongly capitalised and committed to its progressive dividend policy and does not anticipate any impact on the interim or final dividend.</p>
<p>Hiscox will publish its Interim Results on Monday 29 July 2019.</p>
<p>The person responsible for making this announcement is Marc Wetherhill, Group Company Secretary for Hiscox Ltd.</p>
<p><strong>Notes to editors</strong></p>
<ol><li>Typhoon Jebi is the most powerful typhoon to hit Japan. Industry loss estimates for this event increased from $2 billion to $16 billion<sup>1</sup>, as severe winds impacted an area of high-value construction ahead of the upcoming Olympic Games and Rugby World Cup. This caused an unusually large number of claims and increased repair costs as demand surged.</li>
<li>In the case of Hurricane Michael, industry loss estimates increased from $6 billion to $12 billion<sup>2</sup>. Claims inflation from Hurricane Michael has been impacted by Assignment of Benefits, where insureds pass on claims recovery rights to more aggressive third parties, which has become a feature of the Florida market.</li>
<li>The risk excess book includes products that protect insurers against frequency of risk losses. The strengthened reserving relates to 2018 catastrophe losses and includes significant late developments on some risks.</li>
<li>In the last 10 years the Group has invested approximately $500 million in marketing activities worldwide.</li>
</ol><p>A conference call for analysts will take place at 8.00am on 12 July 2019. To join, please dial into the call at least 15 minutes before, using the dial in details below.</p>
<p>United Kingdom (Local): 020 3936 2999<br />
All other locations: +44 20 3936 2999<br />
Participant Access Code: 361263</p>
<p>A recording of the call is available via webcast <a href="https://www.investis-live.com/hiscox/5d25fc21550786110096843b/ffff" target="_blank" title="Webcast">here</a>. </p>
<p><strong>Ends</strong></p>
<p><strong>For further information please contact:</strong><br />
<br /><strong>Hiscox Ltd</strong><br />
Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8321<br />
Kylie O'Connor, Head of Communications, London +44 (0)20 7448 6656 <br />
Ryan Thompson, Investor Relations Manager, London +44 (0)20 7448 6522</p>
<p><strong>Brunswick</strong><br />
Tom Burns +44 (0)20 7404 5959<br />
Simone Selzer +44 (0)20 7404 5959<br />
<br /><strong>About The Hiscox Group</strong></p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It's a long-standing strategy which in 2018 saw the business deliver a profit before tax of $137.4 million in a challenging year for insurers.</p>
<p>The Hiscox Group employs over 3,300 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.</p>
<p>_____________</p>
<p><em><sup>1</sup></em>Source: AIR (September 2018), Swiss Re (May 2019)<br /><em><sup>2</sup></em>Source: AIR (December 2018), Florida Office Of Insurance Regulation (June 2019)</p>
Fri, 12 Jul 2019 06:28:25 +0000Danny46536 at https://www.hiscoxgroup.comQ1 2019 Trading Statementhttps://www.hiscoxgroup.com/news/press-releases/2019/07-05-19
<span>Q1 2019 Trading Statement</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2911" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">ryan</span></span>
<span>7th May 2019</span>
<p><strong>Hamilton, Bermuda (7 May 2019) – </strong>Hiscox Ltd (LSE:HSX), the international specialist insurer, today issues its trading statement for the first three months of the year to 31 March 2019.</p>
<p>Gross written premiums grew by 3.3% in constant currency to $1,164.7 million (2018: $1,157.7 million). Hiscox Retail continued its disciplined approach, while Hiscox London Market and Hiscox Re & ILS have been opportunistic, growing where rates are improving most.</p>
<p>Bronek Masojada, Chief Executive Officer, commented: “We have done what we said we would do in the first quarter. In retail we continue to pull back in US private company D&O, where conditions are challenging, and the UK business is adapting to a new IT system which will help us capture the long-term opportunity. We expect growth for our retail businesses to trend towards the mid-point of our 5-15% target range in the second half.</p>
<p>“In the London Market and in reinsurance, where conditions are improving, we are growing in the right areas and maintaining our focus on writing profitable business.”</p>
<p><strong>Gross Written Premiums for the period:</strong></p>
<table><tbody><tr><td>
<p> </p>
</td>
<td>
<p><strong>Gross Written Premiums to 31 March 2019</strong></p>
</td>
<td>
<p><strong>Gross Written Premiums to 31 March 2018</strong></p>
</td>
<td>
<p><strong>Growth in constant currency</strong></p>
</td>
<td>
<p><strong>Growth in USD</strong></p>
</td>
</tr><tr><td>
<p> </p>
</td>
<td>
<p><strong>US$m</strong></p>
</td>
<td>
<p><strong>US$m</strong></p>
</td>
<td>
<p><strong>%</strong></p>
</td>
<td>
<p><strong>%</strong></p>
</td>
</tr><tr><td>
<p><strong>Hiscox Retail</strong></p>
</td>
<td>
<p>$593.3</p>
</td>
<td>
<p>$574.8</p>
</td>
<td>
<p>7.7%</p>
</td>
<td>
<p>3.2%</p>
</td>
</tr><tr><td>
<p><strong>Hiscox London Market</strong></p>
</td>
<td>
<p>$228.6</p>
</td>
<td>
<p>$219.8</p>
</td>
<td>
<p>5.3%</p>
</td>
<td>
<p>4.0%</p>
</td>
</tr><tr><td>
<p><strong>Hiscox Re & ILS</strong></p>
</td>
<td>
<p>$342.8</p>
</td>
<td>
<p>$363.1</p>
</td>
<td>
<p>(4.6%)</p>
</td>
<td>
<p>(5.6%)</p>
</td>
</tr><tr><td>
<p><strong>Total</strong></p>
</td>
<td>
<p><strong>$1,164.7</strong></p>
</td>
<td>
<p><strong>$1,157.7</strong></p>
</td>
<td>
<p><strong>3.3%</strong></p>
</td>
<td>
<p><strong>0.6%</strong></p>
</td>
</tr></tbody></table><p><br /><strong>Rates</strong></p>
<p>In Hiscox London Market, rates have increased across the portfolio by approximately 4% year to date, as the cumulative impact of two consecutive years of heavy market losses and the Lloyd’s ‘Decile 10’ directive continues to drive rate improvement in the majority of classes. Cargo, marine hull and US public company directors and officers’ (D&O) have seen the most significant rate rises, all up double digits, while pricing in property lines continues to firm. Pricing in cyber and terrorism remains competitive.</p>
<p>In reinsurance, where capacity is abundant, rate improvement has been more incremental. For Hiscox Re & ILS, rates are up by approximately 2% across the portfolio, with the retrocession and risk excess accounts achieving the highest increases. Rates in US catastrophe-exposed business are up low-single-digits, while pressure continues in the international book where rates are down slightly in aggregate, despite increases of more than 25% on loss-affected Japanese business at the April renewals.</p>
<p>In our retail businesses pricing is broadly flat, with claims trends in the market driving increases in UK home insurance. Rates in cyber are under pressure and we are being cautious in our approach.</p>
<p><strong>Claims</strong></p>
<p>Hiscox Retail has seen a more normal claims experience compared to a very benign start to 2018. Hiscox USA continued to see claims in the D&O book where we are actively reducing.</p>
<p>Hiscox London Market has been impacted by a higher frequency of losses in the property book, including a single large household loss.</p>
<p>In line with the market, Hiscox Re & ILS has seen some deterioration on Typhoon Jebi and the risk excess book, where notifications continue to come in later than expected. As a result, our aggregate reserve development, whilst remaining positive, is expected to be at the lower end of the normal range.</p>
<p><strong>Investments</strong></p>
<p>The investment return for the first three months of 2019 was $84.2 million (2018: -$13.5 million), or 5.3% on an annualised basis (2018: -0.2%). Assets under management at 31 March 2019 were $6,334 million (2018: $6,586 million).</p>
<p>Following a rocky end to 2018 caused by concerns over slowing global growth, financial markets have rebounded so far in 2019. Equity markets have recorded double-digit gains in some regions, and most bond markets have made positive returns. As a result, our year to date investment return is already well ahead of our position at the end of last year.</p>
<p>While our investment strategy remains broadly unchanged, we have benefited from our decision to increase exposure to short-duration corporate credit as spreads widened towards the end of 2018. However, with economic and political uncertainty an on-going feature in many parts of the world, it appears likely that bouts of market volatility will continue throughout the year, and we will remain conservatively positioned.</p>
<p><strong>Hiscox Retail</strong></p>
<p><strong>Gross Written Premiums for the period:</strong></p>
<table><tbody><tr><td style="width: 173px;">
<p> </p>
</td>
<td colspan="2" style="width: 142px;">
<p><strong>Gross Written Premiums to 31 March 2019</strong></p>
</td>
<td colspan="2">
<p><strong>Gross Written Premiums to 31 March 2018</strong></p>
</td>
<td>
<p><strong>Growth in constant currency</strong></p>
</td>
<td>
<p><strong>Growth in USD</strong></p>
</td>
</tr><tr><td style="width: 173px;">
<p> </p>
</td>
<td style="width: 84px;">
<p><strong>£m/€m</strong></p>
</td>
<td style="width: 66px;">
<p><strong>US$m</strong></p>
</td>
<td>
<p><strong>£m/€m</strong></p>
</td>
<td>
<p><strong>US$m</strong></p>
</td>
<td>
<p><strong>%</strong></p>
</td>
<td>
<p><strong>%</strong></p>
</td>
</tr><tr><td style="width: 173px;"><strong>Hiscox Retail</strong></td>
<td style="width: 84px;"> </td>
<td style="width: 66px;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr><tr><td style="width: 173px;">
<p>Hiscox UK*</p>
<p>Hiscox Europe*</p>
<p>Hiscox Special Risks</p>
<p>Hiscox USA</p>
<p>Hiscox Asia**</p>
</td>
<td style="width: 84px;">
<p>£137.3</p>
<p>€136.3</p>
<p> </p>
<p> </p>
<p> </p>
</td>
<td style="width: 66px;">
<p>$178.9</p>
<p>$154.9</p>
<p>$38.1</p>
<p>$212.6</p>
<p>$8.8</p>
</td>
<td>
<p>£133.0</p>
<p>€116.7</p>
<p> </p>
<p> </p>
<p> </p>
</td>
<td>
<p>$184.9</p>
<p>$143.5</p>
<p>$39.7</p>
<p>$200.3</p>
<p>$6.4</p>
</td>
<td>
<p>3.2%</p>
<p>16.8%</p>
<p>(1.8%)</p>
<p>6.1%</p>
<p>39.0%</p>
</td>
<td>
<p>(3.2%)</p>
<p>7.9%</p>
<p>(3.9%)</p>
<p>6.1%</p>
<p>37.8%</p>
</td>
</tr><tr><td style="width: 173px;">
<p><strong>Hiscox Retail total</strong></p>
</td>
<td style="width: 84px;">
<p> </p>
</td>
<td style="width: 66px;">
<p><strong>$593.3</strong></p>
</td>
<td>
<p> </p>
</td>
<td>
<p><strong>$574.8</strong></p>
</td>
<td>
<p><strong>7.7%</strong></p>
</td>
<td>
<p><strong>3.2%</strong></p>
</td>
</tr></tbody></table><p>*2018 gross written premiums for Hiscox UK (formerly Hiscox UK & Ireland) and Hiscox Europe have been re-stated to reflect the impact of business transferred from Hiscox UK to Hiscox Europe due to structural changes made in readiness for Brexit.<br />
**2019 gross written premiums for Hiscox Asia include the recognition of premium controlled by DirectAsia Thailand which is written via an agency relationship into Hiscox Insurance Company (Bermuda). The table above presents Hiscox Asia on a normalised basis for management purposes.</p>
<p><strong>Hiscox UK</strong></p>
<p>Hiscox UK’s gross written premiums grew by 3.2% in constant currency to $178.9 million (2018: $184.9 million), with growth subdued as we continue to adapt to a new IT system.</p>
<p>In the broker channel, we have successfully piloted a new operating model which is now being rolled out across the UK. We are on track to commence the transition of our high net worth business onto the new system in the second half of the year as planned, and service standards are expected to return to normal once these changes are fully embedded. We expect growth to remain subdued until these changes take full effect.</p>
<p>Our direct-to-consumer business has continued to deliver strong growth, however we are seeing increased competition in Direct Commercial. Our strong brand is key to differentiating us in this space and we will continue to invest significantly in marketing to boost our growth.</p>
<p>In March we launched our new CyberClear product in London, with over 350 brokers and partners in attendance. Cyber insurance is a key area of growth in the UK and CyberClear offers market-leading protection for our customers against a wide range of threats.</p>
<p>Bob Thaker joined as CEO during the quarter, returning from Asia where he led DirectAsia since 2015. Bob’s background in strategy and experience running a fast-growing digital insurance business will be invaluable as we continue to scale our direct platform in the UK.</p>
<p><strong>Hiscox Europe</strong></p>
<p>Hiscox Europe had a strong start to the year, growing gross written premiums by 16.8% in constant currency to $154.9 million (2018: $143.5 million).</p>
<p>Germany and Spain continue to be the standout performers, delivering strong growth, especially in commercial lines. Benelux has delivered above-budget growth so far this year and France continues to improve, achieving its highest retention rates in five years for the first quarter.</p>
<p>In January, Hiscox Ireland and a number of European underwriting partnerships transferred from Hiscox UK to Hiscox Europe as part of the structural changes made in readiness for Brexit. We have increased our local presence in Dublin, with the Ireland business now successfully integrated into our European operation and performing well.</p>
<p>We will be opening two new offices this year in Berlin and Stuttgart, as we continue to see strong demand and market recognition for our products and services in Germany. Hiscox Germany was awarded best in the industry for its claims management (in cyber, D&O and professional indemnity) by a prominent German insurance publication. We have also been recognised as one of the best German employers in the Great Place to Work® 101-250 employee category.</p>
<p><strong>Hiscox USA</strong></p>
<p>Hiscox USA grew gross written premiums by 6.1% to $212.6 million (2018: $200.3 million), as we deliver on our plan to shrink our D&O book in response to an increased frequency of claims and rate inadequacy in the market. Our intention is to reduce the account by more than half this year and we are on track to achieve this, which will improve profitability.</p>
<p>Our direct and partnerships division continues to deliver strong growth, with partnerships performing particularly well in the first quarter. Sustained investment in the brand is driving improved customer acquisition and the business will benefit further from the new policy administration system being implemented later this year. In the broker channel there has been strong growth in the professions book, as well as casualty, where rates are attractive.</p>
<p>We have launched our first fully-integrated media campaign in the US, featuring our first ever US TV advertisements, alongside partnerships with well-known media outlets and brands including National Public Radio, The Wall Street Journal and Major League Baseball. The ‘Barcode’ campaign is the latest in our ‘Encourage Courage’ brand series aimed at US small businesses.</p>
<p>We expect growth for Hiscox USA to trend towards the mid-point of our 5-15% target range for the retail businesses towards the end of the year.</p>
<p><strong>Hiscox Special Risks</strong></p>
<p>Gross written premiums for Hiscox Special Risks were down by 1.8% in constant currency to $38.1 million (2018: $39.7 million), however this figure was impacted by the recognition of multi-year policies. On an underlying basis the top line was flat.</p>
<p>Conditions in our core kidnap and ransom market, where we have a dominant position, remain challenging. We have renewed our focus on our strategic underwriting partnerships worldwide and we are seeing good progress.</p>
<p>We have seen an uptick in interest for our Security Incident Response (SIR) product, which has delivered good growth to start the year. We will continue to ramp up our investment in marketing and distribution, having recently expanded the business development team in the US.</p>
<p><strong>Hiscox Asia</strong></p>
<p>Hiscox Asia grew gross written premiums by 39.0% in constant currency to $8.8 million (2018: $6.4 million).</p>
<p>In Singapore we have had consecutive record-breaking months for car and motorbike insurance sales driven by the success of new partnerships. The business is also benefiting from a recent brand refresh which provides a stronger and more differentiated look and feel in display advertising on taxis and buses.</p>
<p>Thailand also achieved record sales during the quarter, with a focus on digital marketing delivering results.</p>
<p><strong>Hiscox London Market</strong></p>
<p>Gross written premiums in our London Market business grew by 5.3% in constant currency to $228.6 million (2018: $219.8 million) as rate improvement continues in the majority of classes.</p>
<p>The market is still digesting two years of heavy losses in addition to the Lloyd’s ‘Decile 10’ directive, and we are taking advantage of opportunities as they arise. Growth has been most significant in marine liability, product recall, cyber and general liability, where we have launched two innovative consortia. One offers protection against faults in advanced and emerging technology or hard-to-insure products; the other provides access to meaningful capacity for large corporations. The response from brokers has been overwhelmingly positive.</p>
<p>We are seeing substantial dislocation in the US public company D&O market, which is causing rates to rise. This market has different characteristics to the US private company market D&O written in Hiscox USA, and if conditions improve sufficiently, we will look to grow as the year progresses.</p>
<p><strong>Hiscox Re & ILS</strong></p>
<p>In Hiscox Re & ILS, gross written premiums decreased by 4.6% in constant currency to $342.8 million (2018: $363.1 million), with the main driver being a reduction of capital available to be deployed by the ILS funds following the significant losses of last year. Excluding the impact of ILS, premiums grew by 3%.</p>
<p>Our teams in London and Bermuda have done well to capitalise on rate improvement in property catastrophe reinsurance and retrocession, with the latter account achieving particularly strong growth. At the April renewals we secured double-digit increases in Japanese loss-affected business, but rates elsewhere in the international book were down.</p>
<p>An abundance of capacity in reinsurance, from traditional and alternative sources, continues to apply downward pressure on rate momentum. However, we are optimistic that sustainable rate rises will continue for the rest of the year as the market recognises significant deterioration on prior year losses and recent loss experience that requires an updated view of risk.</p>
<p>Due to heavy losses in the risk excess and the wildfire market over the last two years, we have taken action to adjust our view of risk, increase rates and reduce exposure on some business. Loss-affected business in Florida is set to renew mid-year and although we expect significant rate improvement, we are not yet certain if the increases will adequately reflect the cost of the risk.</p>
<p>Performance of our ILS funds through 2017 and 2018 was in line with expectations and we are pleased that our investors remain committed. Since the launch of the funds in 2014, they have generated positive net returns for investors. ILS assets under management remain in excess of $1.5 billion, including capital deployed into Latitude, our new fund which commenced writing business in January. Latitude brings together the underwriting expertise of Hiscox London Market and Hiscox Re & ILS to give investors access to a diversified portfolio of insurance and reinsurance risks.</p>
<p><strong>For further information:</strong></p>
<p><strong>Hiscox Ltd</strong><br />
Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8321<br />
Kylie O’Connor, Head of Communications, London +44 (0)20 7448 6656 <br />
Ryan Thompson, Investor Relations Manager, London +44 (0)20 7448 6522<br /><br /><strong>Brunswick</strong><br />
Tom Burns +44 (0)20 7404 5959<br />
Simone Selzer +44 (0)20 7404 5959</p>
<p><strong>Notes to editors</strong></p>
<p><strong>About The Hiscox Group</strong><br />
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2018 saw the business deliver a profit before tax of $137.4 million in a challenging year for insurers.</p>
<p>The Hiscox Group employs over 3,300 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a href="http://www.hiscoxgroup.com">www.hiscoxgroup.com</a>.</p>
Tue, 07 May 2019 05:58:09 +0000ryan42151 at https://www.hiscoxgroup.com2018 Preliminary Resultshttps://www.hiscoxgroup.com/news/press-releases/2019/25-02-19
<span>2018 Preliminary Results</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2556" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">kay</span></span>
<span>25th February 2019</span>
<p>For the year ended 31 December 2018</p>
<p style="text-align: center;">“A good result in a challenging year for insurers”</p>
<table><tbody><tr><td>
<p> </p>
</td>
<td>
<p><strong>2018</strong></p>
</td>
<td>
<p><strong>2017</strong></p>
</td>
</tr><tr><td>
<p><strong>Gross premiums written</strong></p>
</td>
<td>
<p>$3,778.3m</p>
</td>
<td>
<p>$3,286.0m</p>
</td>
</tr><tr><td>
<p><strong>Net premiums earned</strong></p>
</td>
<td>
<p>$2,573.6m</p>
</td>
<td>
<p>$2,416.2m</p>
</td>
</tr><tr><td>
<p><strong>Profit before tax</strong></p>
</td>
<td>
<p>$137.4m</p>
</td>
<td>
<p>$39.7m</p>
</td>
</tr><tr><td>
<p><strong>Profit before tax excluding FX</strong></p>
</td>
<td>
<p>$151.1m</p>
</td>
<td>
<p>$120.6m</p>
</td>
</tr><tr><td>
<p><strong>Earnings per share</strong></p>
</td>
<td>
<p>45.1¢</p>
</td>
<td>
<p>12.0¢</p>
</td>
</tr><tr><td>
<p><strong>Total ordinary dividend per share for year</strong></p>
</td>
<td>
<p>41.9¢</p>
</td>
<td>
<p>39.8¢</p>
</td>
</tr><tr><td>
<p><strong>Net asset value per share</strong></p>
</td>
<td>
<p>819.1¢</p>
</td>
<td>
<p>835.1¢</p>
</td>
</tr><tr><td>
<p><strong>Group combined ratio</strong></p>
</td>
<td>
<p>94.9%</p>
</td>
<td>
<p>99.9%</p>
</td>
</tr><tr><td>
<p><strong>Group combined ratio excluding FX</strong></p>
</td>
<td>
<p>94.4%</p>
</td>
<td>
<p>98.8%</p>
</td>
</tr><tr><td>
<p><strong>Return on equity</strong></p>
</td>
<td>
<p>5.6%</p>
</td>
<td>
<p>1.5%</p>
</td>
</tr><tr><td>
<p><strong>Investment return</strong></p>
</td>
<td>
<p>0.7%</p>
</td>
<td>
<p>2.0%</p>
</td>
</tr><tr><td>
<p><strong>Foreign exchange losses</strong></p>
</td>
<td>
<p>$(13.7)m</p>
</td>
<td>
<p>$(80.9)m</p>
</td>
</tr><tr><td>
<p><strong>Reserve releases</strong></p>
</td>
<td>
<p>$326.5m</p>
</td>
<td>
<p>$324.2m</p>
</td>
</tr></tbody></table><p><strong>Highlights </strong></p>
<ul><li>Profit before tax tripled to $137.4 million (2017: $39.7 million), with a strong underwriting result of $148.0 million (2017: $43.0 million) in another busy year for claims.</li>
<li>Gross premiums written grew by 15.0% with double-digit growth in all segments.</li>
<li>The standout performer was Hiscox London Market, which returned to growth and profit after three years of disciplined cycle management.</li>
<li>Hiscox Retail wrote over $2 billion of premium and served one million customers for the first time, and its profits cover the dividend for the third consecutive year. </li>
<li>Hiscox Re & ILS was impacted by a second year of significant natural catastrophes and some large individual claims. Kiskadee Investment Managers’ assets under management now at $1.5 billion.</li>
<li>Ongoing investment in brand and infrastructure to capture long-term growth opportunity continues.</li>
</ul><p> </p>
<p>Bronek Masojada, Chief Executive of Hiscox Ltd, commented:</p>
<p>“We have generated strong growth and good profits in a busy year for claims. The tough action we took in our London Market business is paying off, and we are seeing some positive momentum in big-ticket lines, where rates, terms and conditions are improving. We are growing well in our chosen retail segments, and our small market shares mean the size of the opportunity in retail remains immense. We will continue to invest in our people, infrastructure and brand and maintain our focus on disciplined growth.”</p>
<p><strong>For further information</strong></p>
<table><tbody><tr><td>
<p><strong>Hiscox Ltd</strong></p>
</td>
<td>
<p> </p>
</td>
</tr><tr><td>
<p>Marc Wetherhill, Group Company Secretary, Bermuda</p>
</td>
<td>
<p>+1 441 278 8300</p>
</td>
</tr><tr><td>
<p>Kylie O’Connor, Head of Group Communications, London</p>
<p>Ryan Thompson, Investor Relations Manager, London</p>
</td>
<td>
<p>+44 (0)20 7448 6656</p>
<p>+44 (0)20 7448 6522</p>
</td>
</tr><tr><td>
<p><strong>Brunswick</strong></p>
</td>
<td>
<p> </p>
</td>
</tr><tr><td>
<p>Tom Burns</p>
</td>
<td>
<p>+44 (0)20 7404 5959</p>
</td>
</tr><tr><td>
<p>Simone Selzer</p>
</td>
<td>
<p>+44 (0)20 7404 5959</p>
</td>
</tr></tbody></table><p><strong><u>Notes to editors</u></strong></p>
<p><strong>About The Hiscox Group</strong></p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2018 saw the business deliver a profit before tax of $137.4 million in a challenging year for insurers.</p>
<p>The Hiscox Group employs over 3,300 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a href="http://www.hiscoxgroup.com">www.hiscoxgroup.com</a>.</p>
<p><a href="https://www.hiscoxgroup.com/sites/group/files/documents/2019-02/Hiscox-2018-preliminary-results-25-February2019.pdf" target="_blank" title="PDF, opens in a new window">For the full regulatory statement</a></p>
<p> </p>
<p><strong>Chairman’s statement</strong></p>
<p>Hiscox delivered a good profit before tax of $137.4 million (2017: $39.7 million) despite another busy year for claims. After a relatively benign start, we saw a number of natural catastrophes and significant market losses in the second half which, combined with turbulent financial markets, have impacted our result. Our long-held strategy of balancing the volatility of big-ticket lines with more steady retail earnings continues to serve us well, and the strength of our products, people and brand mean we are able to seize opportunities.<br /><br />
Our retail businesses had a good year, delivering double-digit growth and solid profits as we reached the milestone of one million retail customers. Our business in the USA continues to develop strongly, however as we continue to exercise discipline in the under-performing directors and officers’ account, growth will be tempered.</p>
<p>In big-ticket lines, market conditions have been challenging but our London Market business has reaped the rewards of the tough action we have taken over the last three years to reduce or exit from unprofitable lines, and returned to excellent growth and profitability.</p>
<p>Our reinsurance and ILS operations experienced a very active year for claims, with exposure to hurricanes and wildfires in the US, typhoons in Japan, hailstorms in Australia and large claims in cyber and marine hull.</p>
<p>In our investments, we were impacted by both difficult equity markets and the value of our bond portfolio which naturally reduced as interest rates rose in the US. We will benefit from those same rising interest rates in 2019 and recover 2018 losses as we hold the bonds to maturity. </p>
<p><strong>Financial performance</strong></p>
<p>The result for the year ending 31 December 2018 was a profit before tax excluding foreign exchange of $151.1 million (2017: $120.6 million). Gross premiums written increased by 15.0% to $3,778.3 million (2017: $3,286.0 million). The combined ratio was 94.9% (2017: 99.9%). Earnings per share increased to 45.1¢ (2017: 12.0¢) and the net asset value per share decreased to 819.1¢ (2017: 835.1¢). Post-tax return on equity was 5.6% (2017: 1.5%). Our investment return of $42.5 million (2017: $112.5 million), before derivatives and fees, equates to a return of 0.7% (2017: 2.0%) on total assets under management.</p>
<p>I am pleased to announce a final dividend of 28.6¢, which is an increase of 5.2%. The record date for the dividend will be 10 May 2019 and the payment date will be 12 June 2019.</p>
<p>The Board has approved a scrip alternative subject to the terms and conditions of Hiscox Ltd's 2016 Scrip Dividend Scheme. The last date for receipt of scrip elections will be 20 May 2019 and the reference price will be announced on 30 May 2019.</p>
<p><strong>Our market </strong> </p>
<p>We are ruled by the market, particularly in big-ticket and reinsurance lines, and adjust our appetite according to the opportunities it provides. Rates did not respond as much as we feel they should have following the losses arising from hurricanes Harvey, Irma and Maria in 2017, but where they did we were able to take advantage. A second successive year of historic market losses seems to have done little to spur a widespread market turn, but once again we have been ready, taking opportunities where they have been available.</p>
<p>In London, the Lloyd’s Decile 10 work is making good progress to redress the balance when it comes to capacity and market discipline. We have been very supportive of Lloyd’s, which has put pressure on the market’s underwriters to take action in unprofitable areas. I feel it strange that it takes a regulator to tell businesses that it is a bad thing to lose money, but the process has certainly squeezed out some of the worst performing lines and that is a very good thing indeed.</p>
<p>Although the reinsurance market did not harden as many had hoped, the retrocession market – reinsurance of reinsurers – did become more sensibly priced. This has in the past led to sufficient increases all the way through to insurance pricing. It remains to be seen whether that particular tail still wags the dog.</p>
<p>Progress can feel painstaking, but we are gaining ground on improved rates, and on the technical, but important, area of terms and conditions. As our London Market result shows, we are happy to navigate these waters and our underwriters are up to the task.</p>
<p> </p>
<p><strong>People and culture</strong></p>
<p>People and culture make a difference; indeed, culture and values are as important as strategy and distribution, so when it comes to values we expect our top executives and the Board to show leadership. As Hiscox continues to grow, the continuity of our culture is key. It has been pleasing this year to see strong succession from within and, in retail, the top team sharing their expertise with different parts of our business to help drive Hiscox to the next level. </p>
<p>I am regularly told by those that know us that Hiscox has a distinctive culture underpinned by strong values. Being the highest ranking financial services firm in Glassdoor’s 2019 best places to work in the UK, and receiving very positive customer feedback, validates that our values are being lived. We do not take this for granted, and around every five years, as new people join and the business evolves, we undertake an exercise to refresh them. I am pleased that we are embarking upon another such exercise, led by our Chief Executive Bronek. It doesn’t mean that we feel they are wrong – language becomes dated and core principles need to be expressed so they resonate with new generations of employees. Our values inform all our day-to-day decisions and that makes them critical to maintaining our reputation for integrity and decent and fair behaviour in everything we do.</p>
<p> </p>
<p><strong>Outlook</strong></p>
<p>The diversity of our products and distribution continues to give us options. Our retail operations have again balanced the volatility of the big-ticket lines, validating our long-held strategy. We have talked before about the moderating percentage growth rate in Hiscox USA, but we find the size of the US opportunity exciting.</p>
<p>In the London Market, it has been a war of attrition but rates and terms are improving in many lines and the refinements we have already made to the portfolio mean we are well positioned as renewed discipline courses through the market. Similarly in reinsurance, we believe opportunities will present themselves in loss-affected accounts. We also expect to benefit from improved investment conditions.</p>
<p>2018 was a year of change and achievement in our operations, and more change is planned in 2019. Although we have completed our structural readiness for Brexit, our investment in infrastructure projects that will boost our abilities to serve customers and create efficiencies continues. This is all good, necessary work, but as we have mentioned previously it will have an impact on growth and expenses in the short term.</p>
<p>I would like to finish by thanking everyone at Hiscox for their efforts this year, particularly as we entered the FTSE100. Their hard work in serving our customers, paying claims, establishing new partnerships, building new systems and supporting our growth has all contributed to this result.</p>
<p><strong>Robert Childs<br />
25 February 2019</strong></p>
<p> </p>
<p><strong>Chief Executive’s report</strong></p>
<p>2018 was another eventful year for insurers, with catastrophe activity at historic levels, financial market turmoil and geopolitical uncertainty. In this challenging environment, Hiscox grew gross premiums written by 15.0% to $3,778.3 million and more than tripled profits to $137.4 million (2017: $39.7 million). Our post-tax return on equity was 5.6%, an improvement on last year’s 1.5%, and a fair result in the circumstances.</p>
<p>The standout performer in 2018 was Hiscox London Market which returned to growth and profit after three years of tough action; withdrawing from poor-performing lines and navigating challenging markets. Having done much of the hard work, the team was in a good position to navigate the Lloyd’s Decile 10 profit remediation programme.</p>
<p>Hiscox Retail wrote over $2 billion of premium, served one million customers and has become a strong profit generator for the Group, with its profits covering the dividend for the third consecutive year. As a result of portfolio optimisation, we expect growth in Hiscox Retail to be in the high single digits for the next 12 months. <br /><br />
Hiscox Re & ILS has been hit by a second year of catastrophe claims. Our aggregate protection products, our risk excess covers and some specialty areas - all areas of focus since 2012 - meant that the higher frequency of mid-sized catastrophes and individual large losses in 2018 hit us harder than 2017’s fewer but larger catastrophes. Our products worked, our clients are happy, and while it cost us more, that is the nature of our business.</p>
<p>Our ambition for 2019 is to continue to grow premiums, albeit at a slightly slower pace than 2018. We are hopeful that positive pricing momentum and ongoing portfolio optimisation will lead to improved underwriting profits, with higher interest rates driving better investment returns.</p>
<p>I review each part of our business in turn below.</p>
<p><strong>Hiscox Retail</strong></p>
<p><strong>Generating profits and creating value; investment in brand and infrastructure continues</strong></p>
<p>Hiscox Retail comprises Hiscox UK & Europe and Hiscox International. In this division, our specialist knowledge and retail products differentiate us and our ongoing investment in brand helps us build a strong market position. Hiscox Retail is the single biggest segment in the Group and this year generated 55% of the Group’s gross premiums written at $2,087.1 million (2017: $1,835.4 million), up 13.7% year-on-year. Our ambition remains to grow our retail business between 5% and 15% per annum in the medium term. We reached the milestone of one million retail customers and $2 billion of premiums during the year, and the fact that our market shares remain small in most of our markets indicates the size of the opportunity still ahead of us. Building a retail business takes time, but persistence pays off. We continue to invest in building our brand across all markets and in multi-year IT infrastructure programmes that will support our growth plans.</p>
<p>Hiscox Retail delivered profits of $136.0 million (2017: $141.6 million), and the combined ratio of 93.6% (2017: 94.6%) is within our 90%-95% target range. The improvement in combined ratio on the larger premium base was insufficient to offset lower investment returns, leading to lower profits from the division. The rating environment across retail also remained broadly flat throughout 2018.</p>
<p>We made some important leadership changes across retail in 2018. As previously announced, Ben Walter moved from CEO of Hiscox USA to the newly created role of CEO Hiscox Global Retail. Ben is helping to sharpen the focus of our retail operations, and address the common challenges that our retail businesses face when it comes to driving product innovation, creating scale and digitising for the modern age. In addition, Steve Langan moved from CEO of Hiscox UK & Ireland to CEO of Hiscox USA while remaining Chief Marketing Officer for the Group. Steve has the business-building experience and branding firepower that our US operations require for their next phase of growth. Bob Thaker, who is currently serving as CEO of DirectAsia, will succeed Steve as Hiscox UK CEO in the first quarter of 2019, and we have begun the search for his replacement. Each of these appointments will help to drive Hiscox Retail forward in the medium to long term, but as each new CEO gets settled in their new roles, I am expecting growth to be more conservative in the short term. </p>
<p><strong>Hiscox UK & Europe</strong></p>
<p>This division provides personal lines cover – from high-value household, fine art and collectibles to luxury motor – and commercial insurance for small- and medium-sized businesses, typically operating in white collar industries. These products are distributed via brokers, through a growing network of partnerships and, for some simple risks in the UK, France and Germany, direct to customers. Our schemes business offers insurance solutions to customers with similar risk profiles, for example sports clubs, wedding cars and niche industry associations.</p>
<p><em>Hiscox UK & Ireland</em></p>
<p>Hiscox UK & Ireland increased gross premiums written by 11.5% to $799.5 million (2017: $717.1 million), or 7.8% in constant currency, with every region contributing and good growth in most of our product areas.</p>
<p>Cyber remains a bright spot and has grown ahead of budget. The introduction of the EU’s General Data Protection Regulation, and no doubt the constant deluge of data breaches that we all read about in the media, are rapidly increasing demand for specialist cover. </p>
<p>Our direct offering is growing well and UK direct reached £100 million of premium this year, helped by a sustained marketing commitment. Building this business has taken time, but the brand we have established and expertise we have embedded is valuable not only to the UK, but also to our other retail operations. It is a model we seek to replicate in our other direct businesses. </p>
<p>The home insurance market remains competitive, with escape of water claims still prevalent and now some subsidence claims after a dry summer. As a result, premiums have increased, and while we try and mitigate the impact of price increases on our customers, we must be disciplined if we are to provide the service that they expect.</p>
<p>In the broker channel, IT change dominated the agenda this year and growth was lower than in previous years. Adapting to our new system with new ways of working has caused some indigestion and had a knock-on effect to our usual standards of service to our brokers and customers. We appreciate their support as we work to get things right. In 2019, our existing broker high net worth business will begin to transition to the new system. We expect growth in the broker channel will continue to be affected as these changes take place, until we reach full operational capability by mid-2019.</p>
<p><em>Hiscox Europe</em></p>
<p>Hiscox Europe had another great year. Gross premiums written grew by 17.2% to $322.3 million (2017: $275.0 million), or 11.4% in constant currency, helped by both strong new business and retention. Cyber, classic car, management liability and technology products continue to perform well in Europe and we continue to invest in them.</p>
<p>Germany is now our largest business in terms of premium, with our technology, management liability, motor and cyber products proving most popular. The Frankfurt branch we opened in 2017 is performing well, and having a physical presence in Germany’s financial capital is yielding good results. We will extend our regional footprint further during 2019, with new offices in Stuttgart and Berlin.</p>
<p>In Spain our management liability, professional indemnity and cyber products are key growth drivers. We have also experienced strong new business through existing partnerships, by bringing new products to existing distribution channels.</p>
<p>Our Benelux business has seen good growth in motor, fine art and high-value household where we have benefited from competitors retreating. We launched our cyber and professional indemnity products in Belgium during the year, with promising early signs.</p>
<p>In France, growth has been more muted. After a challenging period in household, we have taken action, implementing a new underwriting and pricing strategy. Cyber and partnerships with financial institutions have </p>
<p>performed well, and in motor the partnership we established with Aon has enabled us to materially grow our classic car book.</p>
<p>In most markets, cyber has exceeded our expectations. Our investment in talent and marketing, and the consistency we have introduced in our CyberClear brand is paying off. We have developed a leadership position in Germany and Holland, and Spain has had a very promising response to the cyber product it launched at the start of the year. There is more to do in France, but in time we hope to replicate the success we have had elsewhere.</p>
<p>The shared service centre in Lisbon has grown over the 12 years since it was established, from five people in 2006 to a 400-strong team in 2018. It has created valuable efficiencies for Europe and other parts of our business including Hiscox UK, Hiscox MGA and Group IT now benefit from its support.</p>
<p>The roll-out of our ‘My Hiscox’ broker extranet sites across Europe is progressing to plan, and provides brokers and partners with additional products and convenient self-service features. The robotic process automation (RPA) that I mentioned last year, which allows us to automate back-end processing and further improve our service levels to brokers and partners, has been rolled out across policy administration, claims and finance and resulted in the automation of 70,000 transactions in 2018. Our focus on IT infrastructure in Europe will continue in 2019, when we will start work to prepare the business for a new core policy, claims, billing and collections system. This will be a similar multi-year undertaking to the work we have done within our UK and US businesses.</p>
<p>Due to the structural changes we have made to our business in readiness for Brexit, Ireland will be reported as part of Hiscox Europe from 2019. One of the upsides of the changes we have implemented is that Hiscox Europe will benefit from greater clarity and attention, with its own Board oversight.</p>
<p><strong>Hiscox International</strong></p>
<p>Hiscox International comprises Hiscox USA, Hiscox Special Risks and Hiscox Asia. It grew by 14.5% to $965.3 million (2017: $843.3 million).</p>
<p><em>Hiscox USA</em></p>
<p>Hiscox USA underwrites small- to mid-market commercial risks through brokers, other insurers and directly to businesses online and over the telephone. The business continues to achieve strong growth, with gross premiums written increasing by 15.4% to $809.6 million (2017: $701.4 million).</p>
<p>Our online direct and partnerships division, where the business we write is predominantly for small businesses with one to five employees, continues to be the biggest driver of growth for Hiscox USA. It grew by 43% to reach $206 million. Growing partnership distribution and our commitment to building a direct-to-customer brand are impactful here, and the business will be the first beneficiary of the new policy administration system currently being implemented.</p>
<p>In the broker channel, growth was driven by professional risks and general liability and we benefited from good retention, though new business has been hard fought – especially in the architect and engineers market, where competition is heating up at the lower end of the market. We are maintaining our underwriting and pricing integrity in mid-market cyber, where a maturing US cyber market has led to falling prices and widening cover, and we continue to carefully manage our exposure. Like others in the market, we experienced an increased severity of claims and rate inadequacy for directors and officers’ (D&O) for private companies. We have responded with discipline and expect our D&O book to shrink in 2019.</p>
<p>Our new US MGA has now commenced trading, with an initial focus on commercial property. The MGA underwrites on behalf of Hiscox London Market and other Lloyd’s syndicates, allowing us to increase our line size and be a more material participant in the market. There is the potential to broaden the MGA’s scope over time.</p>
<p>The operational resilience of the business has been boosted by new offices in Las Vegas and Phoenix, which improve our capabilities to serve West Coast customers. </p>
<p><em>Hiscox Special Risks</em></p>
<p>Hiscox Special Risks underwrites kidnap and ransom, security risks, personal accident, classic car, jewellery and fine art. Hiscox Special Risks has teams in London, Guernsey, Cologne, Munich, Paris, New York, Los Angeles and Miami.</p>
<p>The business had another good year and delivered gross premiums written of $136.2 million (2017: $127.2 million), an increase of 7.0%. Around half of the business written here are multi-year policies, which impacts on the top line and causes year-to-year volatility in revenues.</p>
<p>We have maintained our market-leading position in kidnap and ransom despite increased competition and ongoing challenges in the rating environment. The Special Risks Underwriting Centre is helping to boost retention and allows underwriters more time to work on complex risks and new business.</p>
<p>Our Security Incident Response product, which responds to a range of security issues such as criminal threats, workplace violence, corporate espionage, mysterious disappearance and cyber extortion, continues to be an important opportunity. It has created a market where none existed previously, and I regularly describe it as the product that every CEO needs. Who do you turn to for help when you face one of these remote, but sadly not unthinkable, events? The product is now available in the UK, USA, Japan, Spain and the Netherlands and we have deployed additional resources to support further growth. The product was recognised with the Innovation Award at Business Insurance magazine’s Innovation Awards 2018.</p>
<p><em>Hiscox Asia</em></p>
<p>Our brand in Asia, DirectAsia, is a direct-to-consumer business in Singapore and Thailand that sells predominantly motor insurance. Hiscox acquired it in 2014.</p>
<p>The business grew its controlled premiums by 32.7% to reach $19.5 million (2017: $14.7 million). This excludes premiums controlled by DirectAsia Thailand, which is currently written via an agency relationship into Hiscox Insurance Company (Bermuda) Limited and reported within Hiscox Re & ILS. From 2019 onwards, premiums controlled by DirectAsia Thailand will be reported within Hiscox Retail, in line with the way the Group reports agency income.</p>
<p>Both Singapore and Thailand remain competitive markets, but focused marketing execution along with product and pricing enhancements in car, motorcycle and travel are helping us to attract and retain more customers. We continue to invest in the business as we strive to reach scale.</p>
<p>We have also expanded our distribution capabilities through commercial partnerships with complementary brands including SingTel, Prudential, DBS, and VICOM in Singapore and KTC in Thailand this year. These partnerships broaden our reach, endorse our brand and help us to grow.</p>
<p><strong>Hiscox London Market</strong></p>
<p><strong>Disciplined cycle management driving excellent results </strong></p>
<p>Hiscox London Market uses the global licences, distribution network and credit rating available through Lloyd’s to insure clients throughout the world.</p>
<p>The business has delivered a great result for 2018, increasing gross premiums written by 17.1% to $877.7 million (2017: $749.8 million), or 16.3% in constant currency, with particularly strong growth in property, general liability and cyber. It generated a profit of $78.2 million (2017: loss of $46.7 million) and the combined ratio improved to 89.3% (2017: 111.6%).</p>
<p>The discipline our London Market business has shown over the last three years has paid dividends. Since the end of 2016, the team has walked away from $400 million of challenged business and by the end of 2018 they had succeeded in replacing it with stronger performing business.</p>
<p>The tough action taken in previous years continued in the first part of 2018, when we stopped writing aviation hull and liability, and reshaped our D&O exposure. This work meant we were well positioned for the Lloyd’s Decile 10 directive, a crackdown on unprofitable lines by mandating that each syndicate submit plans to address the worst-performing 10% of their business. It made for an interesting business planning process but we had far fewer adjustments to make than some of our peers. We view the action taken by Lloyd’s as positive; we all benefit from the Lloyd’s brand, rating, central fund and licences, and it is their right to make sure members are competitive. Lloyd’s is considered the problem-solver of insurance – its reputation for having the expertise and experience to place complex or unusual risks has been earned through decades of hard work – and we must play our part in helping to retain that.</p>
<p>Our London Market team worked hard to push through rate rises in 2018 and overall rates went up 7%. Notable rate rises for the year were in household and general liability, while terrorism and cyber remain competitive. The 1 January 2019 renewals are most significant for our property and specialty insurance lines, which grew between 5% and 10% year-on-year, and in hull and cargo we saw double-digit rate increases at 1 January. Elsewhere rates were flat or up slightly.</p>
<p>As a result of the hurricanes, our property division had another active year for claims but delivered a profit overall. US flood remains a significant opportunity and our FloodPlus products use proprietary technology and advanced analytics to provide better cover at a fairer price for customers, backed by capacity from the flood consortium we lead. FloodPlus performed well in another major US flood event, and during the year we broadened our offering with a FloodPlus Commercial product which has been well received.</p>
<p>Our casualty team focuses on larger company cyber, D&O and general liability. In cyber, although overcapacity is impacting pricing, we remain ambitious and continue to invest in our cyber training programme for brokers which is helping to boost understanding of what remains a complex risk. We have some exposure to the Marriott data loss whose scale and cost reminds us that this is not a risk-free area of activity. The D&O market remains especially challenging, and we significantly refocused our ambitions during the year. Our general liability book continues to grow well and trends look positive. We will expand our capacity in 2019 using consortia with other Lloyd’s syndicates.</p>
<p>We have maintained our market share in core lines including terrorism, where our market-leading position continues to stand us in good stead despite the competitive market.</p>
<p>In product recall we remain opportunistic. We responded to the Canadian Cannabis Act - which allows recreational use of marijuana in Canada and has meant that marijuana growers now require product recall cover - with a new product in less than a month which is just the sort of fleetness of foot and innovation we want to be known for.</p>
<p>The discipline and careful underwriting of our marine and energy team has driven an outstanding performance in these lines, helped too by a low loss experience. In cargo, we are refocusing the portfolio to reduce our overall exposure and lead on more of the business we write. </p>
<p>Our alternative risk team focuses on portfolio business, where we match our capacity and experience with the expertise of underwriters in niche lines that complement our core appetite. It has been a challenging year, with some exposure to the California wildfires albeit within our expected loss experience. The team received recognition for their work at the Reactions London Market Awards 2018, where they were awarded Insurance Team of the Year.</p>
<p>We are making progress with Lloyd’s Placing Platform Limited (PPL), the market’s move to digital trading. Hiscox bound 45% of all syndicate risks through PPL, exceeding the target of 30% that was mandated by Lloyd’s. This is good progress, but there is more to do. In 2019 we will support market moves to make the use of PPL for submissions mandatory, as this is where we will begin to gain the greatest efficiencies.</p>
<p>As previously announced, our 2019 business plan for Lloyd’s allows us to underwrite a maximum premium in the year ahead of £1.5 billion for Syndicate 33 (2018: £1.6 billion), a reduction year-on-year as market conditions in 2018 did not tally with our expectations. This gives us sufficient headroom in which to execute our 2019 plans, with some allowance for the unexpected.</p>
<p>Our London Market business is a top quartile performer in Lloyd’s and maintaining that position requires active cycle management. In 2019 we will retain our agility, with a particular focus on areas of opportunity within our investment lines.</p>
<p><em>Hiscox MGA</em></p>
<p>Hiscox MGA underwrites and distributes products where customers’ requirements for capacity exceed Hiscox’s own risk appetite, or where the team’s distribution focus - both digital and physical - allows us to access business in local markets around the world. It operates out of London, Paris and Miami.</p>
<p>We stopped writing Latin American property facultative reinsurance in the first half of the year, having not seen sufficient rating correction after the loss events of 2017. In space, launch delays have had some short-term top-line impact due to attaching premium moving over to 2019, however we are benefiting from our technical underwriting approach in this line of business and are recognised as a market leader.</p>
<p><strong>Hiscox Re & ILS</strong></p>
<p><strong>Good ILS performance, reinsurance market remains tough</strong></p>
<p>Hiscox Re & ILS comprises the Group’s reinsurance teams who are based in London and Bermuda, and ILS activity primarily conducted through our flagship Kiskadee funds. The team underwrites on behalf of Hiscox and third-party capital partners, whether they are insurance companies, other syndicates or capital market investors.</p>
<p>Gross premiums written grew 15.9% to $812.0 million (2017: $700.8 million), or 15.0% in constant currency. Property catastrophe reinsurance and specialty reinsurance were the key drivers of growth. A number of natural catastrophes and large claims impacted profits which resulted in a loss of $23.2 million (2017: profit of $25.5 million) and a combined ratio of 116.9% (2017: 101.3%). As explained earlier, the product mix sold to customers responded more to the run of mid-sized catastrophes and large individual losses that occurred in 2018 as compared to the fewer larger catastrophes in 2017. That is the nature of our business - fortuity influences our year-to-year performance, but good underwriting shines through over time.</p>
<p>There was an initial surge of prices in the first quarter following the 2017 hurricane losses, and we were able to write a disproportionate amount of business at that time, but as rate increases tapered off during the course of the year, our growth became more subdued. Overall, we achieved rate increases of 5% for the year.</p>
<p>We continued to develop our specialty lines where we see growing opportunity, launching a first-of-its-kind industry loss warranty product in cyber, and in flood, where our FloodXtra product differentiates us.</p>
<p>During the 1 January 2019 renewal period, we saw overall rate improvements of around 2% across all lines, driven by increases in retro, risk excess, casualty and specialty. As we look towards the Japanese renewals at 1 April and US renewals at 1 June and 1 July, both of which will be loss-affected, we anticipate further pricing correction. </p>
<p>We have seen sustained demand for our ILS offering. Our funds have performed in line with expectations, with the losses of the second half consistent with modelled outcomes. Assets under management now exceed $1.5 billion after last year’s losses. </p>
<p>We continue to innovate in ILS and have launched a new fund which allows investors to access insurance lines for the first time. The Kiskadee Latitude fund is supported by a top-tier investor who will access a more diverse insurance and reinsurance portfolio with less focus on pure property catastrophe risk. The fund began underwriting on 1 January 2019, supported by over $100 million.</p>
<p><strong>Claims</strong></p>
<p>We experienced a relatively benign first six months of the year for claims; February’s Beast from the East was well within our expected range for a UK weather event, and elsewhere our claims experience was unremarkable. As is the nature of insurance though, anything can happen and it did in the second half of the year, when we experienced a more active environment for both natural catastrophes and large claims. </p>
<p>Hiscox reserved $165 million for Hurricanes Florence and Michael in the USA, and Typhoons Jebi and Trami in the Far East, together with the impact of historic wildfires in California. </p>
<p>In addition, we had some exposure to a number of notable individual claims in cyber, media and marine (including a large marine loss of $13 million). In D&O we experienced a higher severity of claims both in the USA and London Market. The claims trends that I have talked about in Hiscox UK & Ireland – escape of water and subsidence – have also had some effect.</p>
<p>We exercise prudence when it comes to claims reserving, and this approach is evident in reserve releases of $326 million (2017: $324 million) from prior years. This includes favourable experience on the $225 million reserves established for Hurricanes Harvey, Irma and Maria at the end of 2017.</p>
<p>We also announced that the leadership of our claims function is evolving. Jeremy Pinchin, who has held multiple leadership positions during his 13 years at Hiscox, but served throughout as our Group Claims Director, will retire in 2019. When Jeremy joined us in 2005, he was our first Group Claims Director. That year, we paid total claims of around £450 million and had a claims team of less than 50 people. Jeremy has driven the ongoing professionalism of our claim’s operations, ensuring its capabilities have scaled in line with our growth, and it is under his leadership that we now have an award-winning claims function, a 250-strong team, and in 2018 paid out £1.2 billion in claims. Paying claims is what we are here for and Jeremy has enabled Hiscox to go from strength-to-strength in this regard. He also made a huge contribution to our industry, particularly after 9/11 when he had the unique role of Special Counsel for Lloyd’s and coordinated the market’s management of its exposure to the losses arising from September 11.</p>
<p>During his time at Hiscox, Jeremy also served as the first Chief Executive of Hiscox Re; drove the creation of our ILS capability, including naming our funds Kiskadee, a noisy Bermudian bird; served as Chief Executive of Hiscox Bermuda, and as Hiscox Group Company Secretary and General Counsel. I am thankful for his huge and varied contribution to our business during his time at Hiscox. I am pleased that we will continue to benefit from his wisdom as a Non Executive Chairman of Hiscox Special Risks, and as Chairman of the Hiscox Pension Fund.</p>
<p>He is succeeded as Group Claims Director by Grace Hanson. She will be responsible for the strategic direction of Hiscox’s claims activities across the Group, working with the standard-bearers for Hiscox’s customer promise. We will benefit from Grace’s experience, which includes big-ticket property and casualty claims while at Allied World, and volume claims while at Homesite. This combination of knowledge and experience will shape our claims response to the digital era.</p>
<p><strong>Marketing</strong></p>
<p>Our marketing is focused on building a differentiated brand in all our markets to drive value over the short and long term. In 2018 we spent $69.7 million on acquisition and brand-building activity (2017: $69.1 million) with award-winning campaigns such as CyberLive in the UK driving double-digit premium growth in our small business offering. The <em><strong>I’mpossible</strong></em> campaign in the USA continued to run across digital, print, radio and in sponsorship, while in the UK the <em><strong>Hiscox Ever Onwards</strong></em> campaign continued its successful combination of outdoor and radio. Cyber-focused campaigns drove increased awareness of Hiscox across both our business and home insurance customers. We saw great momentum in DirectAsia with new marketing campaigns and distribution partnerships driving new business performance.</p>
<p>Across the Group we activated key partnerships in our core interest areas of art, classic cars and technology, driving awareness and affinity of Hiscox.<br />
</p>
<p><strong>Information technology and major projects</strong></p>
<p>A robust modern infrastructure is essential, not only for the business we are today but also the business we want to be. The volume of work taking place around the Group to transform some of our underlying infrastructure is not insignificant, and we are making good progress. As previously stated, cumulatively these projects are increasing our expense ratio by 1%-1.5% in the short term.</p>
<p>The staggered approach we have taken to replacing our core underwriting systems across Hiscox Retail, starting with the UK, has been prudent. Embedding new systems and training our teams to use them takes time, and has had a short-term impact on service levels as our UK business adjusts, but in time we will reap the benefits of new infrastructure. In the USA, we remain on track for our direct and partnerships business to start transitioning to a new system towards the end of 2019. This will create efficiencies for the US business that are essential, given the size of the opportunity ahead of us. In Europe, we have reviewed our IT requirements and made some progress on improving our broker portals and relationship management systems. In time, our European operations will require the same core systems replacement as the UK and USA, so the associated business readiness activities will happen this year.</p>
<p>We completed the replacement of our HR systems across the Group in 2018 and our multi-year programme of finance change initiatives is progressing well. We have also taken positive steps regarding robotics and machine learning, for example, by automating some routine IT service desk tasks. In 2019 we will continue to move forward with our digitisation efforts, looking at broader use of technologies like application programming interfaces (APIs) and robotics that support our push towards portfolio underwriting in the UK, as well as personal lines and claims innovations that benefit our customers.</p>
<p>As we have said before, like others we have also had a plethora of external factors to respond to; Brexit (more on that below), General Data Protection Regulation (GDPR), New York Cybersecurity Regulation, IFRS 17 accounting standards, the Insurance Distribution Directive (IDD) and the updated Senior Managers Certification Regime (SMCR). So as the Chairman has said, 2018 was a year of change and achievement in our operations, with more planned in 2019. </p>
<p><strong>Brexit</strong></p>
<p>Our business is ready for Brexit, even if British politicians are not. We have always said that, for Hiscox, Brexit is structural not strategic. We have built a profitable business in mainland Europe and Ireland over the past 25 years, which serves over 200,000 customers and employs 420 staff. We have put in place the structures needed to continue to serve these customers, as well as those of our customers from elsewhere in the world who have assets or exposures in these territories.</p>
<p>We have created Hiscox SA, a new Luxembourg insurer to carry our retail risks, and will utilise Lloyd’s Brussels to insure European Economic Area risks which were previously placed with Lloyd’s of London. Adapting to Brexit cost Hiscox approximately $15 million in one-off costs, the majority of which were incurred during 2018, and an expected ongoing cost of $2.4 million per annum. It has also led to an increase in required capital of approximately €100 million, around half of which will moderate over time.</p>
<p>I am proud of the resolve of our teams around the world who have delivered our Brexit solution and I would like to thank them all for their hard work on the project. The Part VII legal process of transferring relevant policies and their associated liabilities from Hiscox Insurance Company to Hiscox SA, as we have just done, is complex, but provides certainty to our customers that we can legally pay all valid claims, even in a hard Brexit scenario. In 2019 we will work with Lloyd’s as they complete their Part VII transfer.</p>
<p><strong>Investments</strong></p>
<p>We manage our investment portfolio with two main objectives in mind: providing sufficient liquidity to pay claims and providing capital to support the underwriting business, while generating strong risk-adjusted returns. These objectives were certainly challenged this year.</p>
<p>Our prediction that the end of 2017 would be a turning point in financial markets proved to be correct, and 2018 was a difficult environment for investors. Interest rate rises, volatility spikes and equity price slumps contrasted sharply with the preceding year. Nevertheless, our cautious approach to risk and asset allocation enabled us to generate reasonable returns in turbulent markets.</p>
<p>In keeping with our long-held conservative approach to investing, we were content to accept the returns on offer in the safer corners of the bond markets while maintaining a modest allocation to equities and hedge funds. As a result of this strategy, our investments made $42.5 million (2017: $112.5 million), before derivatives and fees, a return of 0.7% (2017: 2.0%).</p>
<p>The conventional wisdom that a negative environment for bonds bodes well for equities did not hold true in 2018, with both asset classes underperforming in the majority of markets. In response, we reduced our bond exposure, reducing mark-to-market losses in the process; took refuge in cash, holding more US Dollars than usual; and maintained a low exposure to riskier assets.</p>
<p>While our investment returns were below our initial expectations, we outperformed our indices through a careful selection of active bond, equity and hedge fund managers.</p>
<p>2019 presents yet more uncertainty, with ongoing political instability in Europe and the potential for recession in the USA. While acknowledging the uncertainty, there are reasons to be optimistic; we have seen a material improvement in yields available and are now investing our US bond portfolio at rates in excess of 3%, something we have not been able to do for nearly a decade. We continue to hold a higher than normal allocation to cash and remain well-placed to invest as opportunities emerge. </p>
<p><strong>Outlook</strong></p>
<p>Our ambition for 2019 is to continue to grow premiums, albeit at a slightly slower pace than 2018. We expect that improving pricing as a result of Lloyd’s Decile 10 and our ongoing portfolio optimisation will lead to more insurance profit, with higher interest rates driving better investment returns. We will continue to invest in our underlying infrastructure and our brand. All of this will help propel our business forward.</p>
<p>We are maturing into a larger and more prominent company, but we strive to retain our entrepreneurial spirit. We were promoted to the FTSE 100 at the end of 2018, the consequence of our past endeavours. It was a moment of quiet satisfaction, but more of trepidation. More people will have more opinions on what we should or shouldn’t do. We are alive to the responsibilities, but will seek to live up to our ethos of challenging convention. We are fortunate that in many of our chosen areas, we are still small players with plenty of opportunity ahead of us. People, brand, products and strategic ambition differentiate us and we will continue to nurture them in the year ahead to the benefit of customers, staff and shareholders.</p>
<p> </p>
<p><strong>Bronek Masojada</strong></p>
<p><strong>25 February 2019</strong></p>
Mon, 25 Feb 2019 07:00:00 +0000kay13326 at https://www.hiscoxgroup.comHiscox publishes 2018 gender pay reporthttps://www.hiscoxgroup.com/news/press-releases/2018/18-12-18
<span>Hiscox publishes 2018 gender pay report</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2796" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">cassie</span></span>
<span>18th December 2018</span>
<p>Today we have published our 2018 UK gender pay report, a requirement for all UK companies with 250 or more employees to measure the difference in pay between men and women across a company’s workforce, regardless of seniority or type of role.</p>
<p>Click <a href="https://www.hiscoxgroup.com/sites/group/files/documents/2018-12/19522_Gender_pay_report_2018.pdf" target="_blank" title="Hiscox gender pay report 2018">here</a> to access a copy of the full report.</p>
Tue, 18 Dec 2018 14:20:09 +0000cassie13271 at https://www.hiscoxgroup.comHiscox announces new UK CEO https://www.hiscoxgroup.com/news/press-releases/2018/17-12-18
<span>Hiscox announces new UK CEO </span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2801" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">abi</span></span>
<span>17th December 2018</span>
<p><em>Bob Thaker to relocate back to London in March 2019 from DirectAsia, part of the Hiscox Group</em></p>
<p><strong>London (17 December 2018) –</strong> Hiscox, the specialist global insurer, announces the appointment of Bob Thaker as its new UK Chief Executive Officer, effective March 2019, subject to regulatory approval.</p>
<p>Bob has worked at Hiscox since 2010 and held a number of senior roles during that time, having joined as Head of Strategy before going on to serve as Group Chief Risk Officer. He is already very familiar with the UK business, having spent two years as Head of Claims for Hiscox UK and Europe, where he served on the UK leadership team. In 2014 he relocated to Asia to become Chief Operating Officer of DirectAsia, a newly-acquired direct-to-consumer personal lines insurance business, and became CEO of the DirectAsia Group in January 2015.</p>
<p>Bob succeeds Steve Langan, who moved to the USA in 2018 as Hiscox USA CEO and remains the Hiscox Group’s Chief Marketing Officer. Bob will report to Ben Walter, CEO of Hiscox Global Retail, who is responsible for Hiscox USA, Hiscox UK, Hiscox Europe and Hiscox Special Risks.</p>
<p>In his new role, Bob will lead the 800-strong UK team and will be based out of Birmingham.</p>
<p>Commenting on the appointment, Ben said: “Bob is a natural champion of the customer who will lead the UK team in its next phase of growth. We will benefit from Bob’s experience navigating intensely competitive markets and developing creative partnership opportunities.”</p>
<p>Bob added: “I’m delighted to be returning to Hiscox UK and honoured to lead a great team which has consistently served customers superbly and created a strong market position over many years. I know from my time with the business a few years ago that we are fortunate to enjoy fabulous support from our broker partners for which we remain incredibly grateful. I look forward to working with the team and these terrific partners to build on these great foundations in the years ahead.”</p>
<p><strong>Ends </strong></p>
<p><strong>For further information please contact: </strong></p>
<p> </p>
<p><strong>Hiscox Ltd </strong></p>
<table class="mce-item-table"><tbody><tr><td width="178">
<p>Lucy Hensher</p>
</td>
<td width="170">
<p>+44 (0)20 7448 6619</p>
</td>
<td width="208">
<p><a data-mce-href="mailto:Lucy.Hensher@HISCOX.com" href="mailto:Lucy.Hensher@HISCOX.com"><u><font color="#0066cc">Lucy.Hensher@HISCOX.com</font></u></a></p>
</td>
</tr></tbody></table><p><strong>Notes to editors </strong></p>
<p><strong>About The Hiscox Group</strong></p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. </p>
<p>The Hiscox Group employs over 2,700 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a data-mce-href="http://www.hiscoxgroup.com/" href="http://www.hiscoxgroup.com/"><u><font color="#0066cc">www.hiscoxgroup.com</font></u></a>.</p>
Mon, 17 Dec 2018 13:15:01 +0000abi13261 at https://www.hiscoxgroup.comHiscox veteran Jeremy Pinchin retires; Grace Hanson appointed Hiscox Claims Directorhttps://www.hiscoxgroup.com/news/press-releases/2018/22-11-18
<span>Hiscox veteran Jeremy Pinchin retires; Grace Hanson appointed Hiscox Claims Director</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2911" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">ryan</span></span>
<span>22nd November 2018</span>
<p style="margin:0cm 0cm 0.0001pt"><!-- x-tinymce/html --></p>
<p><strong>Hamilton, Bermuda (22 November 2018) </strong>– Specialist global insurer Hiscox has today announced that Jeremy Pinchin will retire at the end of February 2019, to be succeeded in his claims responsibilities by Grace Hanson who will join Hiscox in January 2019.</p>
<p>Jeremy joined Hiscox in 2005 as the Group's first Claims Director and has held a number of other leadership positions during his 13-year tenure, including CEO of Hiscox Re and ILS, CEO of Hiscox Bermuda and Group Company Secretary. In his capacity as Group Claims Director, he built an award-winning team of more than 250 people across 14 locations, who are the standard-bearers for Hiscox’s customer promise. He was recently awarded the inaugural London Market Association (LMA) award for ‘outstanding service’ to claims.</p>
<p>After his appointment as the first CEO of Hiscox’s global reinsurance business in 2013 Jeremy led the creation of Kiskadee Investment Managers, Hiscox’s specialist ILS manager which now has $1.7 billion under management.</p>
<p>Prior to Hiscox, Jeremy worked for Lloyd's of London, where he was the first Head of Claims following the creation of the Franchise Team, and was responsible for the market's first co-ordinated claims strategy and Claims Management Principles. He joined Lloyd's as a consultant in early 2002 to head up a team coordinating the market's management of its exposure to the losses arising from September 11.</p>
<p>Hiscox will continue to benefit from Jeremy’s insight and experience as he will serve as Chairman of Hiscox Special Risks and Chairman of Hiscox Pension Trustees.</p>
<p>Grace Hanson qualified as a US lawyer in 1987, reaching partnership in private practice before moving into insurance in 2001 when she joined AIG and relocated to Bermuda. She joined AIG sponsored start-up Allied World where she led their global claims function, including through the large catastrophe loss years of Hurricanes Katrina, Rita and Wilma in 2005. She joined insurtech business, Homesite, as their Corporate Counsel in 2009 and then Chief Claims Officer, which brought her back to Boston. Grace has an MBA from Northeastern University, Boston and studied law at Tulane University, New Orleans.</p>
<p>Hiscox CEO, Bronek Masojada, commented: “I would like to thank Jeremy for his outstanding and enduring contribution to Hiscox. He ensured that Hiscox delivered on its Claims Promise to customers in their hour of need, and the awards the team received are testament to his leadership. He also shaped the growth and development of Hiscox Re & ILS, and our market position reflects this. I’m delighted we will continue to benefit from his sage counsel through his Chairmanship of Hiscox Special Risks and Hiscox Pension Trustees.</p>
<p>“Paying claims will always be at the heart of our business, and Grace’s leadership experience, values and global expertise make her an excellent leader of the team. Her breadth of knowledge, from global catastrophe and retail claims through to insurtech in many of our key markets will be invaluable to the Group.”</p>
<p>Grace added: “I’m very excited and honoured to join Hiscox as Group Claims Director, to support its goal of delivering unparalleled customer service, while remaining at the forefront of the newest developments in the insurance industry.”</p>
<p><!-- x-tinymce/html --></p>
<p><strong>Ends </strong></p>
<p><strong>For further information please contact: </strong></p>
<p><strong>Hiscox Ltd</strong><br />
Ryan Thompson +44(0)20 7448 6522 <a href="mailto:ryan.thompson@hiscox.com" target="_blank">ryan.thompson@hiscox.com</a></p>
<p><strong>Notes to editors</strong></p>
<p><strong>About The Hiscox Group</strong></p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2017 saw the business deliver a profit before tax (excluding foreign exchange) of £93.6 million despite reserving net $225 million for claims in the most costly year ever for natural catastrophes.</p>
<p>The Hiscox Group employs over 2,700 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a href="http://www.hiscoxgroup.com/">www.hiscoxgroup.com</a>.</p>
Thu, 22 Nov 2018 13:48:26 +0000ryan13186 at https://www.hiscoxgroup.comQ3 2018 Trading Statementhttps://www.hiscoxgroup.com/news/press-releases/2018/05-11-18
<span>Q3 2018 Trading Statement</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2796" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">cassie</span></span>
<span>5th November 2018</span>
<p><strong>Hamilton, Bermuda (5 November 2018) </strong>- Hiscox Ltd (LSE:HSX), the international specialist insurer, today issues its trading statement for the first nine months of the year to 30 September 2018.</p>
<p>Gross written premiums increased by 14.3% to $3,043.1 million (2017: $2,663.2 million), with good growth reported in all segments.</p>
<p>Bronek Masojada, Chief Executive Officer, commented: "We have had strong growth, but as the market remains challenging, we will remain disciplined, and I expect our growth to moderate over the balance of the year. It has been an active third quarter for claims across the Group, both from large losses and catastrophes, and I am pleased with how we have responded."</p>
<p>"Hiscox Retail continues to benefit from investment in the brand, and we were pleased to welcome our one millionth retail customer. Our new European subsidiary is fully operational and expected to start writing business from 1 January 2019."</p>
<p>Gross Written Premiums for the period:</p>
<table align="left" border="1" cellpadding="1" cellspacing="1" style="width: 661px;"><thead><tr><th scope="row" style="width: 200px;"> </th>
<th scope="col" style="width: 129px;">Gross Written Premiums to 30 September 2018</th>
<th scope="col" style="width: 138px;">Gross Written Premiums to 30 September 2017</th>
<th scope="col" style="width: 107px;">Growth in constant currency</th>
<th scope="col" style="width: 86px;">Growth in USD</th>
</tr></thead><tbody><tr><th scope="row" style="width: 200px;"> </th>
<td style="width: 129px;"><strong>US$m</strong></td>
<td style="width: 138px;"><strong>US$m</strong></td>
<td style="width: 107px;"><strong>%</strong></td>
<td style="width: 86px;"><strong>%</strong></td>
</tr><tr><th scope="row" style="width: 200px;">Hiscox Retail</th>
<td style="width: 129px;"><strong>$1,596.6</strong></td>
<td style="width: 138px;">$1,367.5</td>
<td style="width: 107px;">12.5%</td>
<td style="width: 86px;">16.8%</td>
</tr><tr><th scope="row" style="width: 200px;">Hiscox London Market</th>
<td style="width: 129px;"><strong>$664.1</strong></td>
<td style="width: 138px;">$590.3</td>
<td style="width: 107px;">10.4%</td>
<td style="width: 86px;">12.5%</td>
</tr><tr><th scope="row" style="width: 200px;">Hiscox Re & ILS</th>
<td style="width: 129px;"><strong>$782.4</strong></td>
<td style="width: 138px;">$705.4</td>
<td style="width: 107px;">9.9%</td>
<td style="width: 86px;">10.9%</td>
</tr><tr><th scope="row" style="width: 200px; color:#666666;">Total*</th>
<td style="width: 129px;"><strong>$3,043.1</strong></td>
<td style="width: 138px;">$2,663.2</td>
<td style="width: 107px;">11.4%</td>
<td style="width: 86px;">14.3%</td>
</tr></tbody></table><p>* excludes business allocated to Corporate Centre of $1.5m.</p>
<p> </p>
<p><strong>Claims</strong></p>
<p>After a benign first half for claims, the Group experienced a more active environment for both natural catastrophes and large claims in the third quarter. This activity extended into October. Hiscox was impacted by catastrophes in the US and the Far East. The Group has reserved net $125 million to cover claims and reduced profit commissions resulting from Hurricanes Florence and Michael, which made landfall on the US East Coast, and Typhoons Jebi and Trammi, which impacted Japan. The losses are within our modelled assumptions for these events. Hiscox has also seen a number of larger individual claims in both our big-ticket and retail businesses, including a large marine loss of $13 million. Hiscox USA has experienced a higher frequency of D&O claims, and Hiscox UK & Ireland has seen an uptick in subsidence claims following a particularly dry summer, as well as a continuation of escape of water claims.</p>
<p><strong>Rates</strong></p>
<p>In Hiscox London Market, rates have increased across the portfolio by 5% year to date, with double-digit increases in major property and 5% in casualty lines. More recently we have seen increases in areas targeted by the Lloyd's 'Decile 10' directive, which has forced the whole market to take action in unprofitable areas. Cargo business, for example, has seen much-needed rate improvement of more than 20% since August. Overcapacity in cyber and terrorism continues to drive pricing pressure in those classes. In Hiscox Re & ILS, rates in US catastrophe-exposed business are up mid-single-digits, while rates in the international book are down slightly. Looking ahead to January and further into 2019 renewals, we expect the market to recognise material adverse development from the hurricanes of 2017 and the recent events in the US and Japan. To date we have seen the most significant rate improvement in our risk excess book, which is up almost 10%, and our wildfire book which is up 50% year to date. Rates in our retail business are broadly flat, with some increases in UK home insurance as the market responds to claims trends.</p>
<p><strong>Investments</strong></p>
<p>The investment return for the first nine months of 2018 was $44 million (2017: $83million), or 0.9% on an annualised basis (2017: 1.6%). Assets under management at 30 September 2018 were $6,438 million (2017: $6,129 million). Market sentiment in 2018 has remained challenging, with most asset classes in which Hiscox invests generating low or even negative returns. Rising yields, most apparent in our US fixed income portfolio, are driving negative mark to market effects and adversely impacting investment income. Clearly over the medium term rising yields hold the promise of improved investment returns. Despite our modest allocation to riskier assets, turbulence in global equity markets is further dampening returns. Given on-going economic and global political tensions, we expect our full year investment return to be subdued.</p>
<p><strong>Brexit</strong></p>
<p>Our preparations for Brexit are well advanced. We are already utilising the new Lloyd's Brussels Subsidiary and our Part VII plans are on track. Our new European subsidiary, Hiscox S.A., is fully operational and expected to start writing business from 1 January 2019. Our plans have always assumed a worst-case scenario 'hard Brexit' and we are prepared, irrespective of the outcome of the government's negotiations. The financial impact of re-organising the business in preparation for Brexit is $15 million across the Group in 2018, and we will inject incremental capital of approximately €40 million in the new entity. However, as we have said before, Brexit is just one of a number of regulatory projects which will have an on-going impact on expenses.</p>
<p><strong>Hiscox Retail</strong></p>
<p>Gross Written Premiums for the period:</p>
<table align="left" border="1" cellpadding="1" cellspacing="1" style="width: 714px;"><thead><tr><th scope="row" style="width: 192px;"> </th>
<th colspan="2" rowspan="1" scope="col" style="width: 175px;">Gross Written Premiums to 30 September 2018</th>
<th colspan="2" rowspan="1" scope="col" style="width: 155px;">Gross Written Premiums to 30 September 2017</th>
<th scope="col" style="width: 107px;">Growth in constant currency</th>
<th scope="col" style="width: 81px;">Growth in USD</th>
</tr></thead><tbody><tr><th scope="row" style="width: 192px;"> </th>
<td style="width: 92px;"><strong>£m/€m</strong></td>
<td style="width: 83px;"><strong>US$m</strong></td>
<td style="width: 79px;">£m/€m</td>
<td style="width: 76px;">US$m</td>
<td style="width: 107px;">£m/€m</td>
<td style="width: 81px;">US$m</td>
</tr><tr><th colspan="7" scope="row" style="width: 192px;">
<p><strong>Hiscox Retail</strong></p>
</th>
</tr><tr><th scope="row" style="width: 192px;">- Hiscox UK & Ireland</th>
<td style="width: 92px;"><strong>£453.2</strong></td>
<td style="width: 83px;"><strong>$611.9</strong></td>
<td style="width: 79px;">£417.4</td>
<td style="width: 76px;">$532.2</td>
<td style="width: 107px;">8.8%</td>
<td style="width: 81px;">15.0%</td>
</tr><tr><th scope="row" style="width: 192px;">- Hiscox Europe</th>
<td style="width: 92px;"><strong>€215.7</strong></td>
<td style="width: 83px;"><strong>$257.3</strong></td>
<td style="width: 79px;">€193.4</td>
<td style="width: 76px;">$213.3</td>
<td style="width: 107px;">11.6%</td>
<td style="width: 81px;">20.7%</td>
</tr><tr><th scope="row" style="width: 192px;">- Hiscox USA</th>
<td style="width: 92px;"> </td>
<td style="width: 83px;"><strong>$611.9</strong></td>
<td style="width: 79px;"> </td>
<td style="width: 76px;">$517.1</td>
<td style="width: 107px;">18.1%</td>
<td style="width: 81px;">18.3%</td>
</tr><tr><th scope="row" style="width: 192px;">- Hiscox Special Risks</th>
<td style="width: 92px;"> </td>
<td style="width: 83px;"><strong>$101.3</strong></td>
<td style="width: 79px;"> </td>
<td style="width: 76px;">$94.1</td>
<td style="width: 107px;">5.1%</td>
<td style="width: 81px;">7.7%</td>
</tr><tr><th scope="row" style="width: 192px;">- DirectAsia</th>
<td style="width: 92px;"> </td>
<td style="width: 83px;"><strong>$14.2</strong></td>
<td style="width: 79px;"> </td>
<td style="width: 76px;">$10.8</td>
<td style="width: 107px;">27.3%</td>
<td style="width: 81px;">31.5%</td>
</tr><tr><th scope="row" style="width: 192px; color:#666666;">Hiscox Retail total</th>
<td style="width: 92px;"> </td>
<td style="width: 83px;"><strong>$1,596.6</strong></td>
<td style="width: 79px;"> </td>
<td style="width: 76px;"><strong>$1,367.5</strong></td>
<td style="width: 107px;"><strong>12.5%</strong></td>
<td style="width: 81px;"><strong>16.8%</strong></td>
</tr></tbody></table><p> </p>
<p><em><strong>Hiscox UK & Ireland</strong></em></p>
<p>Hiscox UK & Ireland increased gross written premiums by 9% in constant currency to $611.9 million (2017: $532.2 million), driven largely by commercial lines. We have seen continued good performance in the direct channel, particularly in small commercial business, and from our partnerships with other financial services companies. Interest in our cyber offering has been strong. In direct home we have taken action to address rate inadequacy due to inflation and claims trends affecting the market. This has had an impact on the rate of new business growth in that area. Growth in the broker channel is being driven by commercial lines, motor, fine art and last year's transfer of contingency business from Hiscox London Market. However, as mentioned at the half year, the work we are undertaking to embed our new IT system and associated processes in the broker channel has impacted growth and we expect this to continue into the new year.</p>
<p><strong><em>Hiscox Europe</em></strong></p>
<p>Hiscox Europe delivered a strong performance , growing gross written premiums by 12% in constant currency to $257.3 million (2017: $213.3 million), with Germany and Spain performing particularly well, both up in excess of 20% year on year. Commercial lines, including management liability, technology and cyber, continue to be the main drivers of growth in all regions. Our on-going investment in brand and marketing is generating above-budget new business growth and our claims service is helping to keep retention rates high. In France, we have recently signed a deal which enabled us to grow our classic car book materially. We have also implemented a new pricing strategy in household business in France, where we remain very disciplined. In the Benelux, growth is being driven by cyber, fine art and household. In cyber, our focus on recruiting and developing talent is paying off. We have built a strong position in Germany, our most developed European market for cyber, and the early signs in Spain are very encouraging. We continue to evolve our service capabilities and build stronger relationships with our network of third party service providers, which is critical to enabling us to provide high-quality service for our customers.</p>
<p><strong><em>Hiscox USA</em></strong></p>
<p>Hiscox USA continues to perform well, increasing gross written premiums by 18% to $611.9 million (2017: $ 517.1 million), as our direct and partnerships division delivered above-budget growth, benefiting from our long-term investment in the brand and an expanding appetite. In the broker channel, there has been strong new business growth in healthcare and general liability where rates are attractive. In D&O we are experiencing an increased frequency of claims, combined with rate inadequacy. Consequently, in keeping with our disciplined approach, we are reshaping our portfolio and reducing our participation in more challenged segments. The US business is benefiting from commission income generated by business written into our new commercial property MGA.</p>
<p><em><strong>Hiscox Special Risks</strong></em></p>
<p>Hiscox Special Risks grew premiums by 5% in constant currency to $101.3 million (2017: $94.1 million), however this figure benefited from the recognition of a number of multi-year policies. On an underlying basis the top line was flat. Conditions remain challenging in the kidnap and ransom market, however growth in our Security Incident Response (SIR) product is very encouraging. We have re-launched the product with a specialised wording in order to further differentiate SIR from our kidnap and ransom offerings, and we are investing significantly in development and distribution by expanding the team.</p>
<p><em><strong>DirectAsia</strong></em></p>
<p>DirectAsia grew gross written premiums by 27% in constant currency to $14.2 million (2017: $10.8 million).</p>
<p>In Thailand we have enjoyed strong growth in new business, benefiting from improved lead conversion and an increased focus on customer acquisition. In Singapore we have seen good growth across all product lines, where our product innovation, dynamic pricing, distribution, partnerships and claims service continue to differentiate us.</p>
<p><em><strong>Hiscox London Market</strong></em></p>
<p>Gross written premium in our London Market business grew by 10% in constant currency to $664.1 million (2017: $590.3 million), in response to rate improvement in many classes of business. Growth has been particularly strong in major property and general liability, where we continue to see good margins. Hurricane Florence struck the US East coast in September, bringing significant flooding to parts of North and South Carolina. Our FloodPlus products for homeowners and commercial customers have again been tested by this event and are responding well. We remain focused on helping our customers recover by paying claims quickly. During the period we refocused our ambitions in D&O to concentrate on areas where we see the best margin and can trade profitably. We are also beginning to see the benefits of the tough decisions we have taken over the last two years to reduce or exit areas such as extended warranty, aviation hull and aviation liability. The Lloyd's 'Decile 10' directive has challenged the whole market to take similarly tough action in unprofitable lines and it is already having an effect. We are seeing positive movement in rates and signs of a re-balance of influence with brokers. Our 2019 business plan for Lloyd's has been approved with capacity of £1.4 billion for Syndicate 33 (2018: £1.6 billion). We remain disciplined in the face of market conditions that, while better than previous years, have not improved sufficiently to warrant additional capacity for growth. We expect to maintain the level of premiums written into the Syndicate year-on-year.</p>
<p><em><strong>Hiscox Re & ILS</strong></em></p>
<p>In Hiscox Re & ILS, gross written premiums increased by 10% in constant currency to $782.4 million (2017: $705.4 million). The growth rate has reduced since the half year, as strong rate improvement experienced at the beginning of the year has begun to recede. The year on year growth rate has been impacted additionally by inwards reinstatement premiums written in the corresponding period in 2017, following the material catastrophe events in the third quarter last year. The year to date growth rate excluding reinstatements is 20% in constant currency. Property catastrophe reinsurance has delivered the bulk of the growth, and our risk excess and specialty portfolio, where we see the best risk-adjusted returns, has also grown well. Our specialty book, which includes cyber, wildfire and financial lines business, is a key area of focus and we have secured positive rate improvement for ourselves and our third-party capital partners. Japan is a key market for Hiscox Re & ILS and we have taken losses from Typhoon Jebi, as primary insurers exhausted their deductibles. The reinsurance division had comparatively moderate exposure to Hurricane Florence, however the business was exposed to a number of market losses, including in the marine portfolio. As we reported in July, our risk excess and specialty portfolios, where we retain a greater proportion of exposure on our own balance sheet, have experienced a more active claims environment compared to the benign experience of previous years. Hiscox Re ILS funds reached $1.7 billion AUM in the period.</p>
<p><strong>ENDS</strong></p>
<p><strong>For further information</strong></p>
<p>Hiscox Ltd:</p>
<p>Marc Wetherhill, Group Company Secretary +1 441 278 8321</p>
<p>Kylie O'Connor, Head of Communications +44 (0) 20 7448 6656</p>
<p>Brunswick:</p>
<p>Tom Burns +44 (0)20 7404 5959</p>
<p>Simone Selzer +44 (0)20 7404 5959</p>
<p><strong>Notes to editors</strong></p>
<p>About The Hiscox Group</p>
<p>Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It's a long-standing strategy which in 2017 saw the business deliver a profit before tax (excluding foreign exchange) of $120.6 million despite reserving net $225 million for claims in the most costly year ever for natural catastrophes. The Hiscox Group employs over 2,700 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS. Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com . The free online CSS code beautifier takes care of your dirty code and strips every unwanted mess. Go to the CSS Cleaner to get started.</p>
Mon, 05 Nov 2018 09:02:55 +0000cassie13161 at https://www.hiscoxgroup.comUK small businesses targeted with 65,000 attempted cyber attacks per day https://www.hiscoxgroup.com/news/press-releases/2018/18-10-18
<span>UK small businesses targeted with 65,000 attempted cyber attacks per day </span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/3591" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">katie</span></span>
<span>18th October 2018</span>
<ul><li>Hiscox study highlights the number of attempted cyber attacks on UK small businesses every day</li>
<li>While most attempts fail, a small business in the UK is successfully hacked every 19 seconds</li>
<li>Cyber breaches cost the average small business £25,700 in basic ‘clear up’ costs every year</li>
<li>Real-time cyber attack attempts can be viewed at <a href="http://www.hiscox.co.uk/cyberlive">www.hiscox.co.uk/cyberlive</a> and are also being streamed on billboards across the UK</li>
</ul><p> <br />
London, UK (18 October 2018) – Small businesses in the UK are the target of an estimated 65,000 attempted cyber attacks every day, according to new figures1 from specialist global insurer Hiscox. </p>
<p>The estimates are based on tests undertaken by the insurer which monitor, in real-time, the total number of attempted attacks on three ‘honeypot’ computer systems which are typical of those used by small firms across the country. </p>
<p>The total number of attempted attacks ranged from 900 to 359,000 in each 24 period, averaging 65,000 over the three weeks the servers have been monitored.</p>
<p>In order to raise awareness of this issue, Hiscox is live streaming the number of attempted attacks to its website at <a href="http://www.hiscox.co.uk/cyberlive">www.hiscox.co.uk/cyberlive</a> and also broadcasting the figures live on over 100 billboards across the UK.</p>
<p><strong>Successful attacks</strong><br />
According to the insurer, almost one in three (30%2) UK small businesses suffered a cyber breach last year – equivalent to over 4,500 successful attacks per day or one every 19 seconds.</p>
<p>Cyber security incidents cost the average small business £25,700 last year in direct costs (e.g. ransoms paid and hardware replaced) but this is just the beginning. Indirect cost such as damage to reputation, the impact of losing customers and difficulty attracting future customers, remains unmeasured but is expected to significantly exceed this.</p>
<p><strong>James Brady, Head of Cyber, Hiscox UK & Ireland commented:</strong> “We know small businesses in the UK are hot targets for cyber criminals and these figures highlight the alarming extent of this. Most small businesses recognise the threat that cyber criminals pose on a global scale, but are less convinced of the risks facing their own operations, considering themselves ‘too small’ to be worthy targets, but this just isn’t the case.</p>
<p>“Hackers are prolific and sophisticated which makes staying on top of cyber security a challenge for all organisations. With many small businesses lacking credible cyber security strategies to help manage and prevent such attacks however, the impact when they do occur can be disproportionality severe.</p>
<p>“Outsourcing cyber security management is one option as this can be a more cost effective way to access instant, scalable resources in the event of an attack. The best cyber insurance policies will provide exactly that – practical support including legal advice, forensics and reputation management to help get a business back up and running as quickly as possible.”</p>
<p><strong>Prevention</strong><br />
When questioned, only 52% of UK small businesses stated that they have a clear cyber security strategy in place to manage the impact of an attack, which Hiscox says can significantly hamper their ability to detect, manage and prevent security breaches, as well as make the overall impact much more severe.</p>
<p>Experts agree that communication during and after a cyber attack is critical to managing it, yet only 56% can say with confidence that they fully disclose details of a cyber attack to the relevant internal and external stakeholders. This is particularly concerning given the introduction of GDPR this year, which requires all organisations to report a data breach to the ICO within 72 hours and notify affected customers without undue delay.</p>
<p>Most alarming of all, is that the majority (66%) of those that suffered an attack, admit to making no changes to their policies or systems to help prevent further breaches in the future. This is perhaps one of the key reasons why over half (56%) of those who’ve suffered a breach, are the victim of multiple attacks.</p>
<p><br /><strong>Cyber Security Best Practices: Prevent, Detect and Mitigate</strong></p>
<p>There are a number of basic steps that small businesses can take to help protect against the evolving threat that cyber criminals pose:</p>
<p>Prevent<br />
• Involve and educate all levels of the organisation about cyber threats.<br />
• Have a formal budgeting process and ensure cyber is a part of all decision making.<br />
• Institute cyber training during the on boarding process and in an on-going manner.</p>
<p>Detect<br />
• Include intrusion detection and on-going monitoring on all critical networks.<br />
• Track violations (both successful and thwarted) and generate alerts using both automated monitoring and a manual log.<br />
• Record all incident response efforts and all relevant events.</p>
<p>Mitigate<br />
• Create a plan for all incidents, from detection and containment to notification and assessment, with specific roles and responsibilities defined.<br />
• Review response plans regularly for emerging threats and new best practices.<br />
• Insure against financial risks with a stand alone cyber policy or endorsement.</p>
<p>Ends<br />
<br />
Notes to editors</p>
<ol><li>Hiscox set-up three servers typical of those utilised by UK small businesses and monitored the number of incoming attempted attacks. 64,729 is the average number of attempts per day based on a 25 day period. The minimum number of attempted attacks per day seen was 902 and the maximum 358,822. Press release figures have been rounded.</li>
<li>Figures taken from the Hiscox Cyber Readiness Report. Research for this study was commissioned by Hiscox and conducted by Forrester Consulting via a survey of 4,103 professionals responsible for their organisation’s cyber security strategy between 12 October and 10 November 2017.</li>
<li>The number of successful attacks per second is based upon a small (0 – 49 employees) business population of 5,653,375 – according to BIS Business Population Estimates 2017. With 30% (1,696,012) having experienced a cyber attack in a 12 month period, (Hiscox Cyber Readiness Report) this equates to roughly 4,764 attacks per day, or one every 19 seconds.</li>
</ol><p><br />
For further information please contact:<br />
Hiscox Ltd<br />
Katie Bergin +44 (0) 20 7448 6459 <a href="mailto:Katie.Bergin@HISCOX.com">Katie.Bergin@HISCOX.com</a></p>
<p><br /><strong>About Hiscox Cyber and Data Insurance</strong></p>
<p>Hiscox Cyber and Data risks insurance is designed to support and protect a business if it experiences a data breach or is the subject of an attack by a malicious hacker that affects its computer systems. It provides comprehensive cover, simplicity, reputation protection and a trusted partner in the event of a claim.</p>
<p>The new Hiscox CyberClear Academy is a GCHQ-accredited online cyber security training platform designed to train and raise cyber security awareness among employees and help protect businesses from cyber threats.</p>
<p>For more information visit <a href="https://www.hiscox.co.uk/business-insurance/cyber-and-data-insurance">https://www.hiscox.co.uk/business-insurance/cyber-and-data-insurance</a></p>
<p><strong>About Hiscox CyberLive</strong></p>
<p>The Hiscox ‘CyberLive’ initiative was set up to make small businesses more aware of their vulnerabilities. Hiscox set up three servers typical of those used by a small business, to record real-time attempted cyber attacks. The data from these servers feeds into live digital outdoor posters at over 100 locations across the UK until Sunday 21st October, and the Hiscox website <a href="http://www.hiscox.co.uk/cyberlive">www.hiscox.co.uk/cyberlive</a>. The more attacks there are to the servers, the more the poster headline visually reacts.</p>
<p><br /><strong>About The Hiscox Group</strong><br />
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2017 saw the business deliver a profit before tax (excluding foreign exchange) of £93.6 million despite reserving net $225 million for claims in the most costly year ever for natural catastrophes.</p>
<p>The Hiscox Group employs over 2,700 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.<br />
Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a href="http://www.hiscoxgroup.com">www.hiscoxgroup.com</a>.</p>
<p> </p>
Thu, 18 Oct 2018 12:41:51 +0000katie13146 at https://www.hiscoxgroup.comHiscox launches Influencer and Public Figure Protection insurancehttps://www.hiscoxgroup.com/news/press-releases/2018/27-09-18
<span>Hiscox launches Influencer and Public Figure Protection insurance</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/3591" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">katie</span></span>
<span>27th September 2018</span>
<p>From today, specialist global insurer Hiscox is offering Influencer and Public Figure Protection insurance, covering the risks faced by influencers and high profile individuals as they lead their lives in the public eye.</p>
<p>The new product will make Hiscox the only insurer in the UK currently offering a tailor-made policy for influencers and public figures that includes cover for breach of promotional contract.</p>
<p>The value of the influencer market is estimated to reach as much as $10bn by 2020 . In 2017 alone, there were over 12.9 million brand-sponsored posts on Instagram with this number expected to double by the end of the year.</p>
<p>The policy will be aimed at those with a public reputation and/or social media used for commercial purposes, such as Instagram users promoting products, those monetising a YouTube channel, podcast hosts, guest lecturers and those endorsing major brands. The product will cover as standard:</p>
<ul><li>Breach of a promotional contract - such as claims made by agencies or brands in relation to the quality of a promotion, endorsement or sponsorship undertaken</li>
<li>Breach of advertising legislation – including unintentional breach of any advertising laws, regulations or codes of practice</li>
<li>Unauthorised access or posting on a social media account – such as those targeted by hackers Intellectual property infringement – including copyright infringement or the breach of a license</li>
<li>Defamation – actual or alleged libel, slander and malicious falsehood arising in online posts or in interviews</li>
<li>Breach of privacy – which covers breach of confidence and infringement of any right to privacy arising from media activities</li>
<li>Worldwide cover - including defence costs, damages and a choice of legal counsel.</li>
<li>
<p>In addition to the standard policy, customers will also be able to purchase an optional enhancement which provides coverage for defence costs associated with investigation by an advertising regulator in relation to disclosure of advertising.</p>
<p><strong>James Brady, Head of Media, Hiscox UK & Ireland commented</strong>: “Influencer marketing has expanded exponentially in recent years as brands increasingly leverage the power and sway these individuals have over public opinion and product sales. As a result, influencers and those in the public eye are facing an evolving set of often complex risks.</p>
<p>“The ramifications of a poorly judged social media post or throw-away interview remark are rarely far from the headlines, but at present there is no true solution that offers protection for these individuals. Our Influencer and Public Figure Protection policy is a market-first, offering comprehensive cover including cover for breach of contract. We’ve been insuring high net worth individuals, creative companies and content creators for decades so this is a natural evolution in an area where we already have long-standing expertise.”</p>
<p>For more information visit https://www.hiscox.co.uk/broker/commercial-insurance/media/influencer-protection</p>
</li>
</ul><p>Ends</p>
<p><strong>Notes to editors</strong></p>
<p>Full product details are available in the full policy wording: <a href="https://www.hiscox.co.uk/sites/uk/files/documents/2018-09/19413_Influencer-Public-Figure-Protection_Wording.pdf"><font color="#0066cc">https://www.hiscox.co.uk/sites/uk/files/documents/2018-09/19413_Influencer-Public-Figure-Protection_Wording.pdf </font></a></p>
<p>Estimated market size according to Mediakix <a href="http://mediakix.com/2018/03/influencer-marketing-industry-ad-spend-chart/"><font color="#0066cc">http://mediakix.com/2018/03/influencer-marketing-industry-ad-spend-chart/ </font></a></p>
<p>Total number of brand-sponsored posts according to Influencer Marketing Hub <a href="https://influencermarketinghub.com/the-rise-of-influencer-marketing/"><font color="#0066cc">https://influencermarketinghub.com/the-rise-of-influencer-marketing/ </font></a></p>
<p><strong>Example claim scenarios:</strong></p>
<p>An actress posts a childhood photograph to her Instagram account where it is seen by 750,000 followers. The photographer who took the photo alleges he did not give permission to have his photograph shared and brings a copyright infringement claim against the actress. This policy covers the costs to defend the copyright infringement allegation, as well as the payments to settle or the court awarded damages (which can be $150,000 or more in US courts).</p>
<p>A high profile CEO engages in a heated Twitter exchange, where he makes an accidentally inaccurate statement about his rival. Though he retracts the statement, it has been seen by his 12 million followers, and the rival sues for libel and emotional distress. Our policy provides coverage for the costly defence of a defamation allegation (usually mid-six figures), as well as the indemnity award.</p>
<p>A social influencer forgets to include #ad on sponsored posts. This causes the Advertising Standards Authority to investigate and issue an adverse ruling against the brand. The brand sues the influencer for breach of contract after suffering reputational damage. The influencer opts to settle this claim with the support of our in-house counsel, and the policy pays the settlement amount.</p>
Thu, 27 Sep 2018 14:13:41 +0000katie13091 at https://www.hiscoxgroup.com2018 Interim Resultshttps://www.hiscoxgroup.com/news/press-releases/2018/30-07-18
<span>2018 Interim Results</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2911" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">ryan</span></span>
<span>30th July 2018</span>
<p>For the six months ended 30 June 2018</p>
<p>‘A good start’</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><thead><tr><th scope="col"> </th>
<th scope="col"><strong>H1 2018</strong></th>
<th scope="col"><strong>H1 2017</strong></th>
</tr></thead><tbody><tr><td>Gross premiums written</td>
<td>$2,228.8m</td>
<td>$1,836.2m</td>
</tr><tr><td>Net premiums earned</td>
<td>$1,277.9m</td>
<td>$1,178.3m</td>
</tr><tr><td>Profit before tax</td>
<td>$163.6m</td>
<td>$129.1m</td>
</tr><tr><td>Profit before tax excluding FX</td>
<td>$172.1m</td>
<td>$167.9m</td>
</tr><tr><td>Earnings per share ($)</td>
<td>54.0¢</td>
<td>43.9¢</td>
</tr><tr><td>Earnings per share (£)</td>
<td>39.3p</td>
<td>34.9p</td>
</tr><tr><td>Interim dividend per share</td>
<td>13.25¢</td>
<td>12.60¢</td>
</tr><tr><td>Net asset value per share ($)</td>
<td>853.1¢</td>
<td>855.0¢</td>
</tr><tr><td>Net asset value per share (£)</td>
<td>648.4p</td>
<td>657.7p</td>
</tr><tr><td>Group combined ratio</td>
<td>87.9%</td>
<td>90.8%</td>
</tr><tr><td>Group combined ratio excluding FX</td>
<td>87.8%</td>
<td>89.7%</td>
</tr><tr><td>Return on equity (annualised)</td>
<td>13.5%</td>
<td>11.2%</td>
</tr><tr><td>Investment return (annualised)</td>
<td>0.7%</td>
<td>2.3%</td>
</tr><tr><td>Foreign exchange losses</td>
<td>$8.5m</td>
<td>$38.8m</td>
</tr><tr><td>Reserve releases</td>
<td>$154m</td>
<td>$121m</td>
</tr></tbody></table><p><strong>Highlights</strong></p>
<ul><li>Strong growth in gross premiums written of 21%, with all segments contributing.</li>
<li>Good underwriting drives improved combined ratio of 88%.</li>
<li>Profit before tax up by 27% to $164 million with Hiscox Retail contributing over half.</li>
<li>Reducing loss estimates for 2017 catastrophes drive increase in reserve releases to $154 million, reflecting our prudent approach to reserving.</li>
<li>On track to exceed one million retail customers in 2018.</li>
<li>We continue to see strong demand for our ILS funds and now have assets under management of $1.6 billion.</li>
<li>Interim dividend up 5% to 13.25 cents.</li>
</ul><p>Bronek Masojada, Chief Executive Officer, Hiscox Ltd, commented:<br />
“It has been a good start to the year. Our investment across the business is driving strong profitable growth in all segments. We are on track to exceed one million retail customers in 2018.”</p>
<p><strong>For further information </strong></p>
<p><strong>Hiscox Ltd </strong><br />
Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8300<br />
Kylie O’Connor, Head of Group Communications, London +44 (0)20 7448 6656</p>
<p><strong>Brunswick </strong><br />
Tom Burns +44 (0)20 7404 5959<br />
Simone Selzer +44 (0)20 7404 5959</p>
<p><strong>Notes to editors</strong></p>
<p><strong>About The Hiscox Group </strong><br />
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2017 saw the business deliver a profit before tax (excluding foreign exchange) of $120.6 million despite reserving net $225 million for claims in the most costly year ever for natural catastrophes.</p>
<p>The Hiscox Group employs over 2,700 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a href="www.hiscoxgroup.com" target="_blank">www.hiscoxgroup.com</a>.</p>
<p><strong>Chairman’s statement</strong></p>
<p>I am pleased to report that for the first six months of 2018, the Group delivered a pre-tax profit of $163.6 million (2017: $129.1 million) and has grown gross written premiums strongly by 21.4% to $2,228.8 million (2017: $1,836.2 million), with all areas of the business delivering. Our retail operations in their respective geographies continue to develop and grow and in big-ticket lines, we remain disciplined.</p>
<p>It was pleasing to see the business move quickly to capitalise on higher rates following the natural catastrophes of last year, and we will now maintain our underwriting discipline as rates in big-ticket lines flatten.</p>
<p>It has been a good start to the year, but hurricanes can blow us off course in the second half.</p>
<p><strong>Results</strong></p>
<p>The half year result to 30 June 2018 was a pre-tax profit of $163.6 million (2017: $129.1 million), $172.1 million excluding foreign exchange losses (2017: $167.9 million). Gross written premiums increased by 21.4% to $2,228.8 million (2017: $1,836.2 million) or 16.4% growth in constant currency. Net earned premiums were $1,277.9 million (2017: $1,178.3 million). Following functional currency changes to US Dollars we have seen a reduced impact of foreign exchange resulting in a smaller loss of $8.5 million (2017: loss of $38.8 million). The net combined ratio was 87.9% (2017: 90.8%) or 87.8% (2017: 89.7%) excluding foreign exchange losses. Earnings per share were 54.0 cents (2017: 43.9 cents) or 39.3 pence (2017: 34.9 pence) and net assets per share reduced to 853.1 cents (2017: 855.0 cents) or 648.4 pence (2017: 657.7 pence) following last year’s catastrophes, but have improved since December. The annualised return on equity was 13.5% (2017: 11.2%).</p>
<p>We have had a more normal loss experience across the Group. Reserve releases for the first half were $154 million (2017: $121 million), reflecting our prudent approach to reserving.</p>
<p><strong>Dividend, balance sheet and capital management</strong></p>
<p>For the six months ended 30 June 2018 and beyond, dividends will be declared in US Dollars, aligning shareholder returns with the primary currency in which the Group generates cash flow. Dividends will be paid in Pounds Sterling unless shareholders elect to be paid in US Dollars. The foreign exchange rate at which future dividends declared in US Dollars will be converted into Pounds Sterling will be calculated based on the average exchange rate over the five business days prior to the Scrip Dividend price being determined. On this occasion the period will be between 20 August 2018 and 24 August 2018 inclusive.</p>
<p>In July 2018, the Board determined that future dividend growth, in line with our progressive dividend policy, would be calculated from the level of 39.8 cents per share for the year ended 31 December 2017 (H1 2017: 12.6 cents per share), which is equivalent to the total dividend payout of 29.0 pence per share for the year ended 31 December 2017 (H1 2017: 9.5 pence per share) at the foreign exchange conversion rate prevailing at the dividend declaration dates.</p>
<p>The Board is pleased to announce an interim dividend per share of 13.25 cents, representing a 5% increase over the 2017 interim dividend. The record date for the dividend will be 10 August 2018 and the payment date will be 11 September 2018.</p>
<p>The Board proposes to offer a scrip alternative subject to the terms and conditions of Hiscox Ltd's 2016 Scrip Dividend Scheme. The last date for receipt of Scrip along with the dividend currency elections will be 17 August 2018 and the reference price will be announced on 28 August 2018.</p>
<p>Further details on the dividend election process and Scrip alternative can be found on the investor relations section of the company's website.</p>
<p><strong>Rates </strong></p>
<p>We started the year well, capitalising on the improved conditions in Hiscox London Market and Hiscox Re & ILS, as we led the way in achieving necessary rate increases. We are seeing momentum behind rate increases begin to slow and we expect our rate of premium growth to decline correspondingly.</p>
<p>In our London Market business, rate improvement has been most pronounced in catastrophe-exposed and loss-affected lines such as major property (up 16% in aggregate) and US household and commercial property binders which have seen increases of up to 10%.</p>
<p>In our reinsurance business, rates were up on average 10% but have flattened during the year. Despite this, conditions have improved year-on-year and currently rates are at levels where our own and third-party capital can be put to good use.</p>
<p>The retail businesses have experienced a more stable rating environment and we have grown as a result.</p>
<p><strong>Hiscox Retail </strong></p>
<p>The Hiscox Retail segment comprises Hiscox UK & Europe, and Hiscox International.</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><tbody><tr><td>Gross written premiums</td>
<td>$1,113.0 million (2017: $930.4 million)</td>
</tr><tr><td>Profit before tax</td>
<td>$93.7 million (2017: $92.3 million)</td>
</tr><tr><td>Profit before tax excluding FX</td>
<td>$95.8 million (2017: $89.8 million)</td>
</tr><tr><td>Combined ratio</td>
<td>90.7% (2017: 90.5%)</td>
</tr><tr><td>Combined ratio excluding FX</td>
<td>90.4% (2017: 90.8%)</td>
</tr></tbody></table><p>As previously announced, we have appointed Ben Walter, formerly CEO Hiscox USA, to the newly created role of CEO Hiscox Global Retail. Ben has moved to the UK and is helping to sharpen the Group view of our retail operations, and harmonise the common challenges that our retail businesses face when it comes to driving product innovation, creating scale, and digitising for the modern age.</p>
<p><strong>Hiscox UK & Europe</strong></p>
<p>This division provides personal lines cover – from high-value household, fine art and collectibles to luxury motor – and commercial insurance for small- and medium-sized businesses, typically operating in white collar industries. These products are distributed via brokers and through a growing network of partnerships. Our schemes business offers insurance solutions to customers with similar risk profiles, for example sports clubs and niche industry associations. For some simple risks we distribute policies direct-to-consumer in the UK, France and Germany.</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><tbody><tr><td>Gross written premiums</td>
<td>$610.0 million (2017: $510.5 million)</td>
</tr><tr><td>Profit before tax</td>
<td>$65.5 million (2017: $65.8 million)</td>
</tr><tr><td>Profit before tax excluding FX</td>
<td>$68.9 million (2017: $60.0 million)</td>
</tr><tr><td>Combined ratio</td>
<td>87.5% (2017: 86.6%)</td>
</tr><tr><td>Combined ratio excluding FX</td>
<td>86.8% (2017: 88.0%)</td>
</tr></tbody></table><p><em><strong>Hiscox UK & Ireland </strong></em></p>
<p>Gross written premium grew by 17.4% to $411.3 million (2017: $350.3 million), or 7.4% in constant currency. This is driven by a good performance in our home and direct small business lines, and in our partnerships such as with Barclays. It has also benefited from our events and contingency business moving from Hiscox London Market into Hiscox UK.</p>
<p>During the period UK Direct reached £100 million of premium. Building this business has taken time, but the brand we have established and expertise we have embedded is valuable not only to the UK but also to our other retail operations.</p>
<p>In the broker channel, our professions and specialty commercial and our art and private client businesses are now live on our new IT platform. As is necessary with any IT change of this scale, we have commenced a process of reviewing and refining the system and associated processes in order to realise the desired long-term benefits to our business. We are planning for growth in the broker channel to be muted as these changes take effect.</p>
<p>Escape of water claims remain a feature of the UK household market, but good claims performance in management liability, emerging professional indemnity, technology and cyber is helping to offset these losses. February’s ‘Beast from the East’ cold weather snap in the UK did generate a number of claims, but the event was well within our expected range for a UK weather event.</p>
<p><em><strong>Hiscox Europe </strong></em></p>
<p>Gross written premiums grew by 24.0% to $198.7 million (2017: $160.2 million), or 10.2% in constant currency driven by Germany and Spain.</p>
<p>Germany’s strong growth trajectory has continued, with our management liability, motor and cyber products proving popular. Our marketing focus on cyber is having a positive effect, with new business up significantly year-on-year. The Frankfurt branch we opened last year is performing well, with our sales team on-the-ground providing direct access to a valuable network of brokers in Germany’s financial capital.</p>
<p>In Spain, our management liability, cyber and directors and officers’ lines, and our partnership with a major financial service provider, continue to perform well. The CyberClear proposition we launched at the end of last year has proved particularly popular, with both brokers and partners. The roll-out of our new ‘My Hiscox’ broker extranet site has started in Spain and has attracted more than 650 registered users so far.</p>
<p>Our Benelux business is building on last year’s good momentum, with a focus on professions, cyber and specialty commercial lines. In France, where growth has been more muted, we see greatest potential in cyber, partnerships with financial institutions, and in motor where our good reputation in classic car is attracting new business.</p>
<p>Our preparations for Brexit are progressing well. The approval process for the proposed transfer of certain current and historical policies and associated liabilities from Hiscox Insurance Company Limited to our Luxembourg carrier, Hiscox S.A., using a Part VII legal process, is underway. We have been preparing for a worst-case scenario ‘hard Brexit’ and so, subject to court and regulatory approval, our subsidiary is anticipated to be up and running from 1 January 2019 and will ensure we can continue to serve our clients without interruption.</p>
<p><strong>Hiscox International </strong></p>
<p>This division comprises Hiscox Special Risks, Hiscox USA and DirectAsia.</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><tbody><tr><td>Gross written premiums</td>
<td>$503.0 million (2017: $419.9 million)</td>
</tr><tr><td>Profit before tax</td>
<td>$28.2 million (2017: $26.5 million)</td>
</tr><tr><td>Profit before tax excluding FX</td>
<td>$26.9 million (2017: $29.8 million)</td>
</tr><tr><td>Combined ratio</td>
<td>94.6% (2017: 95.3%)</td>
</tr><tr><td>Combined ratio excluding FX</td>
<td>94.9% (2017: 94.3%)</td>
</tr></tbody></table><p><em><strong>Hiscox Special Risks</strong></em></p>
<p>Hiscox Special Risks underwrites kidnap and ransom, security risks, personal accident, classic car, jewellery and fine art. Hiscox Special Risks has teams in London, Guernsey, Cologne, Munich, Paris, New York, Los Angeles and Miami.</p>
<p>Gross written premiums grew by 5.7% to $69.8 million (2017: $66.0 million) during the first half of the year.</p>
<p>In kidnap and ransom, we are maintaining our market-leading position despite increased competition and on-going challenges in the rating environment.</p>
<p>Our Security Incident Response product, which covers a range of security issues such as criminal threats, workplace violence, corporate espionage and cyber extortion, continues to perform well and was recently launched in The Netherlands. We see significant growth potential for this product, particularly in the US, and are deploying considerable resources to accelerate its growth globally with both existing and potential clients.</p>
<p><em><strong>Hiscox USA</strong></em></p>
<p>Hiscox USA underwrites small- to mid-market commercial risks through brokers, other insurers and directly to businesses online and over the telephone. The business continues to be a stand-out performer for the Group, with gross written premiums increasing by 22.3% to $423.9 million (2017: $346.8 million).</p>
<p>The direct and partnerships division continues to be the biggest driver of growth, and in the broker channel our healthcare, general liability and entertainment lines are performing particularly well. Our new US property MGA has now commenced trading, which as we mentioned in May enables us to increase our line size and make us a more material participant in the market. Moving this premium into the MGA will have a small impact on headline growth for the US business.</p>
<p>Our new offices in Las Vegas and Phoenix are now established and improving our capabilities to service our West Coast customers.</p>
<p>Steve Langan has now begun his new role as Hiscox USA CEO, as previously announced. He remains Chief Marketing Officer for the Group and our US business will benefit hugely from his experience in building strong brands, as the business moves into its next stage of growth.</p>
<p><em><strong>DirectAsia</strong></em></p>
<p>DirectAsia is a direct-to-consumer business in Singapore and Thailand that sells predominantly motor insurance, acquired by Hiscox in April 2014.</p>
<p>DirectAsia achieved gross written premiums of $9.3 million (2017: $7.1 million) during the first half of the year. Both Singapore and Thailand remain competitive markets, so innovation is crucial. Through product and pricing enhancements we are growing in car, motorcycle and family travel, attracting and retaining more customers.</p>
<p>Our marketing and brand-building activities continue to perform well, and we have extended our distribution through commercial partnerships. The partnership we established last year with Shell in Singapore is already boosting reach and driving growth, and we are pleased to have now commenced commercial marketing partnerships in the Thai market. We are actively seeking other partnerships.</p>
<p><strong>Hiscox London Market</strong></p>
<p>This segment uses the global licences, distribution network and credit rating available through Lloyd’s to insure clients throughout the world.</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><tbody><tr><td>Gross written premiums</td>
<td>$458.7 million (2017: $395.8 million)</td>
</tr><tr><td>Profit before tax</td>
<td>$41.9 million (2017: $21.7 million)</td>
</tr><tr><td>Profit before tax excluding FX</td>
<td>$42.8 million (2017: $32.1 million)</td>
</tr><tr><td>Combined ratio</td>
<td>88.6% (2017: 94.6%)</td>
</tr><tr><td>Combined ratio excluding FX</td>
<td>88.4% (2017: 90.8%)</td>
</tr></tbody></table><p>Gross written premiums in Hiscox London Market increased by 15.9% to $458.7 million (2017: $395.8 million), or 13.1% in constant currency.</p>
<p>Where we have seen rate improvements, in lines such as major property and US household and commercial property binders, we have grown significantly. We have also seen strong growth in general liability and cyber as the market develops in these two areas. In our core lines which include terrorism and flood, our product, distribution and service are differentiating us. We have also seen good growth opportunities in specialty lines like marine and energy construction, where we are benefiting from a rising oil price.</p>
<p>US flood remains an area of significant opportunity. Our FloodPlus products use proprietary technology and advanced analytics to provide better cover at a fairer price for customers, backed by capacity from the flood consortium we lead. Our recently launched FloodPlus Commercial product has been well received and we have seen a material uptick in interest for our FloodPlus household product, which is now generating 1,200 quotes per day. These products demonstrate the innovation and unique distribution capabilities of the London Market.</p>
<p>Our London Market business is a top quartile performer in Lloyd’s and maintaining that position requires active cycle management. The tough decisions we took in 2017 and earlier this year to reduce or exit in areas such as extended warranty, aviation hull and aviation liability, position us well against the on-going headwinds. We are also supportive of Lloyd’s as they continue to push for greater profitability in the market.</p>
<p>Our alternative risk team received recognition for their work at the Reactions London Market Awards 2018, where they were awarded Insurance Team of the Year.</p>
<p><strong>Hiscox Re & ILS</strong></p>
<p>The Hiscox Re & ILS segment comprises the Group’s reinsurance businesses in London, Paris and Bermuda and insurance linked security (ILS) activity.</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 750px;"><tbody><tr><td>Gross written premiums</td>
<td>$655.6 million (2017: $510.0 million)</td>
</tr><tr><td>Profit before tax</td>
<td>$57.1 million (2017: $48.0 million)</td>
</tr><tr><td>Profit before tax excluding FX</td>
<td>$54.5 million (2017: $49.9 million)</td>
</tr><tr><td>Combined ratio</td>
<td>71.5% (2017: 83.4%)</td>
</tr><tr><td>Combined ratio excluding FX</td>
<td>72.3% (2017: 81.2%)</td>
</tr></tbody></table><p>Gross written premiums grew by 28.5% to $655.6 million (2017: $510.0 million), or 25.4% in constant currency. This is driven by risk and specialist lines, the additional catastrophe risk we have taken and the business we write on behalf of our ILS and quota share partners.</p>
<p>The good growth we saw at the start of the year has slowed during the second quarter, and we have focused on areas where rate improvement has been most significant such as US property catastrophe risk and risk excess. We will retain our underwriting discipline, particularly if rates flatten further.</p>
<p>Our strategy of sharing the most volatile catastrophe-exposed risks with our quota share and ILS partners, in line with their risk appetite, protects us in heavy catastrophe years such as 2017, where we significantly outperformed the market and delivered an underwriting profit in reinsurance.</p>
<p>After a number of benign years we have seen some one-off losses in our risk excess book, where we still see good opportunities for profitability and growth. We continue to develop our risk and specialist lines where the market is evolving, for example in cyber, with products such as a first-of-its-kind cyber industry loss warranty. In Hiscox Re ILS, our funds and vehicles have performed well relative to the market and in aggregate we continue to see positive reserve development.</p>
<p>We are seeing strong demand for our ILS funds and now have assets under management of $1.6 billion.</p>
<p><strong>Investments</strong></p>
<p>The investment return for the first six months of 2018 is $19.7 million (2017: $58.5 million), 0.7% (2017: 2.3%) on an annualised basis before derivatives and fees. Assets under management at 30 June 2018 were $6,460 million (2017: $5,740 million).</p>
<p>Market sentiment this year is very different to last year. In 2017, inflation expectations rose, and with them, the risk that asset performance would be poor. These risks crystallised in the first quarter of the year, as volatility returned to the markets, interest rates rose and equity markets fell. The long period of low volatility finally came to an end, leading to a negative asset performance for the quarter. The second quarter brought some respite, with recovering equity markets and slower than expected interest rate rises more than recouping the losses of the first quarter for our asset portfolio.</p>
<p>While US interest rates have risen, aided by President Trump’s fiscal injection, UK and European economies have had no such stimulus and so interest rates have not kept up. The European Central Bank is now timetabling the removal of quantitative easing, based on better growth numbers, which should lead to interest rate rises in Europe in the next year or two.</p>
<p>We remain cautious on our expectations for investment return, with a modest exposure to risk assets of 6.7% and a relatively high allocation to cash at 24.8%. This leaves sufficient leeway to re-invest at higher yields as circumstances allow, and protects the balance sheet against rising interest rates.</p>
<p><strong>Marketing </strong></p>
<p>We continue to invest significantly in our brand and it is paying off, creating crucial differentiation and helping to drive growth as we continue our march towards one million retail customers. This year we will spend over $75 million on marketing (2017: $69 million) and most of this investment is targeted at the UK and the US, where we see significant growth opportunity.</p>
<p>In the US, we launched the next evolution of our I’mpossible campaign, which celebrates entrepreneurship, with a new advert in honour of International Women’s Day. In the UK, our CyberLive digital poster campaign raised awareness of the threat that cyber crime poses to small businesses and boosted our exposure as cyber insurance experts.</p>
<p>Elsewhere, we have launched new brand-building campaigns in France and Germany to raise awareness of Hiscox amongst small business owners (whether they buy insurance via a broker or direct) and for DirectAsia both the new TV advertising in Thailand and new product campaigns in Singapore have driven growth.</p>
<p><strong>Outlook </strong></p>
<p>Hiscox is in good shape. The London Market business is navigating the market and finding opportunities in areas such as flood, cyber and general liability. In reinsurance we have grown and are achieving good margins. The retail businesses, in their respective regions and product lines, continue their good momentum. The opportunities are legion.</p>
<p>The Group is also working hard to transform much of our underlying infrastructure. This includes the impact of Brexit, General Data Protection Regulation (GDPR), New York Cybersecurity Regulation, IFRS 17 accounting standards, the Insurance Distribution Directive (IDD) and the updated Senior Managers and Certification Regime (SMCR). The finance and IT infrastructure projects we are undertaking across the Group, especially in our retail businesses, position us favourably as we look to grow market share in key lines and geographies according to the size of the opportunity ahead of us.</p>
<p>My thanks to all employees for their efforts so far. It’s going to be a busy second half.</p>
<p><strong>Robert Childs<br />
Chairman<br />
30 July 2018</strong></p>
<p><a href="https://www.hiscoxgroup.com/sites/group/files/documents/2018-07/Hiscox%20interim%20results%2030%20July%202018.pdf" target="_blank" title="Hiscox Ltd interim results 2018">View full PDF version</a></p>
Mon, 30 Jul 2018 06:01:00 +0000ryan12946 at https://www.hiscoxgroup.comHiscox appoints new UK Chief Underwriting Officer and Managing Director of UK Direct https://www.hiscoxgroup.com/news/press-releases/2018/25-07-18
<span>Hiscox appoints new UK Chief Underwriting Officer and Managing Director of UK Direct </span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2796" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">cassie</span></span>
<span>25th July 2018</span>
<p>Specialist global insurer Hiscox today announces two new senior appointments within its UK retail business.<br /><br />
Ben Horton has been appointed Chief Underwriting Officer for Hiscox UK & Ireland and joins from Zurich where he spent four years as EMEA Claims Director. Prior to this he spent eight years at RSA in a variety of commercial roles including Head of Strategic Sourcing, Commercial Operations Director and Personal Claims Director. In his new role Ben will be based in London.<br /><br />
James Browne has been appointed Managing Director of the UK and Ireland Direct business. Prior to Hiscox, James was a Senior Marketing Director at Phillips in the Netherlands where he worked for a decade. James started his career as a Management Graduate Trainee at Unilever, where he spent seven years in a variety of Marketing and Commercial roles. James will be based in York, the home of our UK Direct operations.<br /><br />
Ben Walter, CEO Hiscox Global Retail commented: “Our retail business is an increasingly important component of Hiscox Group and like any insurance business good underwriting is critical to success. Ben Horton’s deep industry expertise and sharp eye for new opportunities are exactly what we need to drive our most established retail business forward.<br /><br />
“Our Direct channel has been integral to the success of our retail arm. It’s an exciting part of the business that never stands still, and we’re delighted to have a customer-focused executive like James on-board to take it forward. He is an exceptional leader who will build on the great momentum we have in the franchise.” </p>
<p><strong>Ends</strong></p>
<p> <strong>For further information please contact:</strong></p>
<p><strong>Hiscox Ltd</strong><br />
Katie Bergin<br />
+44 (0) 20 7448 6459<br /><a data-mce-href="mailto:Katie.Bergin@HISCOX.com" href="mailto:Katie.Bergin@HISCOX.com">Katie.Bergin@HISCOX.com</a><br />
</p>
<p><strong>About The Hiscox Group</strong><br />
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2017 saw the business deliver a profit before tax (excluding foreign exchange) of £93.6 million despite reserving net $225 million for claims in the most costly year ever for natural catastrophes.<br /><br />
The Hiscox Group employs over 2,700 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.<br /><br />
Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a data-mce-href="http://www.hiscoxgroup.com" href="http://www.hiscoxgroup.com/">www.hiscoxgroup.com</a>.</p>
Wed, 25 Jul 2018 08:55:45 +0000cassie12881 at https://www.hiscoxgroup.comChange in presentation currencyhttps://www.hiscoxgroup.com/news/press-releases/2018/20-06-18
<span>Change in presentation currency</span>
<span><span lang="" about="https://www.hiscoxgroup.com/user/2911" typeof="schema:Person" property="schema:name" datatype="" xml:lang="">ryan</span></span>
<span>20th June 2018</span>
<p>In November 2017 the Group announced the functional currency of Hiscox Syndicate 33, Hiscox Dedicated Corporate Member Limited, Hiscox Syndicate Limited and Hiscox Capital Ltd, and the presentation currency of the Group would change from Sterling to US Dollars effective 1 January 2018.</p>
<p>The change in functional currency will significantly reduce the volatility of the Group’s earnings due to foreign exchange movements, in particular due to translation of foreign currency balances. </p>
<p>Given that a significant majority of Group earnings are denominated in US Dollars, we believe that the presentation currency change will give investors and other stakeholders a clearer understanding of Hiscox’s performance over time.</p>
<p>To assist investors, the financial information for the full year and interim results of 2017 and the full year results of 2016 has been re-presented in US Dollars.</p>
<p><strong>Basis of preparation</strong></p>
<p>In accordance with the guidance defined in IAS 21 “The Effects of Changes in Foreign Exchange Rates”, for the full year and interim results of 2017 and the full year results of 2016 have been re-translated to US Dollars as follows:</p>
<ul><li>Assets and liabilities were translated into US Dollars at closing rates of exchange. Trading results were translated into US Dollars at average rates of exchange for the period. Differences resulting from the re-translation on the opening net assets and the results for the year have been taken to the foreign currency translation reserve (FCTR);</li>
<li>The cumulative translation reserve was set to nil at 1 January 2004 (i.e. the transition date to IFRS). Share capital, share premiums and other reserves were translated at historic rates prevailing at the dates of transactions; and</li>
<li>All exchange rates used were extracted from the Group’s underlying financial records.</li>
</ul><p>The exchange rates used were as follows:</p>
<table border="0" cellpadding="1" cellspacing="1" style="width: 500px;"><thead><tr><th scope="col">GBP/USD</th>
<th scope="col">FY2017</th>
<th scope="col">HY2017</th>
<th scope="col">FY2016</th>
</tr></thead><tbody><tr><td>Closing rate</td>
<td>1.350</td>
<td>1.300</td>
<td>1.240</td>
</tr><tr><td>Average rate</td>
<td>1.289</td>
<td>1.258</td>
<td>1.356</td>
</tr></tbody></table><p><a href="https://www.hiscoxgroup.com/sites/group/files/documents/2018-06/Hiscox%20Ltd%20change%20in%20presentation%20currency%202018_0.pdf" target="_blank" title="Change in presentation currency">Download the re-stated accounts</a></p>
<p><strong>For further information</strong></p>
<p>Marc Wetherhill, Group Company Secretary, Bermuda +1 441 278 8300<br />
Ryan Thompson, Investor Relations, London +44 (0)20 7448 6522</p>
<p><strong>Notes to editors</strong></p>
<p><strong>About The Hiscox Group</strong><br />
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2017 saw the business deliver a profit before tax (excluding foreign exchange) of £93.6 million despite reserving net $225 million for claims in the most costly year ever for natural catastrophes.</p>
<p>The Hiscox Group employs over 2,700 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.</p>
<p>Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit <a href="http://www.hiscoxgroup.com">www.hiscoxgroup.com</a>.</p>
Wed, 20 Jun 2018 15:44:07 +0000ryan12801 at https://www.hiscoxgroup.com